You should make estimated tax payments for the current tax year (2022) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on your prior year’s tax return. (110% if your income was more than $150K) . Your prior year tax return must cover all 12 months.
If your goal is just to avoid the underpayment penalty, then paying 100% of the prior year tax liability is the “safe haven”
TurboTax (TT) can prepare the quarterly payment vouchers. In your 2020 software, enter at:
Federal Taxes or Personal (H&B version)
-Other Tax Situations
-Other Tax Forms
-Form W-4 and Estimated Taxes - Click the Start or Update button
On the next screen answer No to the W-4 question
