Valid options are : withhold more from your paycheck, withhold more from the vesting, send in estimated payment(s) or set some aside for the upcoming tax bill in April.
To avoid an underpayment penalty ... so even if you owe on the return you will not also owe a penalty.
You must make quarterly estimated tax payments (or increase your withholding) for the current tax year 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. (Your prior year tax return must cover all 12 months).
