- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
using the 2210 part III is where you compute the underpayment. read the instructions for line 11 especially the ability to use actual withholding rather than 25% of the total for the year.
https://www.irs.gov/pub/irs-pdf/i2210.pdf
column b would be the estimates and withholding paid 4/15-6/15
+ any overpayment from column a) line 18
the tax that must be paid through the second quarter is 45% of the annualized tax. from 2210 schedule AI line 20
the alternative assuming your AGI is over $150,000 in the prior year is to pay in as follows
1st quarter by 4/15 (or the actual due date) 27.5% of the tax for the prior year reduced by actual withholding 1/1-4/15
2nd quarter by 6/15 (or the actual due date) cumulatively 55% of the tax for the prior year reduced by actual withholding for 1/1-6/15
3rd quarter by 9/15 (or the actual due date) cumulatively 82.5% of the tax for the prior year reduced by actual withholding for 1/1-9/15
4th quarter by 1/15 of the following year (or the actual due date) cumulatively 110% of the tax for the prior year reduced by actual withholding for the year
notes: a) read the 2210 instructions for how to compute the prior year's tax. it may not be the same as line 24
b) rather than using actual withholding when you do the 2210 at year-end you can use 25% of the full year's withholding for each quarter but whichever method you use it must be used for all 4 quarters.