@aversalucinda wrote:
Do I need to prepay taxes to avoid a penalty in 2023
If federal income taxes are not being withheld from the UC you received then you may need to pay estimated taxes to avoid an underpayment penalty on the 2022 tax return.
Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller.
If you need to calculate 2022 estimated taxes then use the worksheets for the Form 1040-ES - https://www.irs.gov/pub/irs-pdf/f1040es.pdf
Estimated tax payments for tax year 2022 can be paid directly to the IRS using the IRS payment website - https://www.irs.gov/payments
