it depends on many things. And if I understand what you indicate, your IRAs will be rollovers not part of your income. Regardless, the key to determining your estimated tax amount and making sure you don't have a penalty for underpayment is to pay enough and, if necessary, pay the balance when you file. Everyone has a different comfort level. You can't go wrong with 110% of your tax for 2024 if your income is going to be as high as you indicate.
Generally, you can avoid the penalty if your total timely estimated payments and withholdings are greater than or equal to the lesser of:
- 90% of the total tax after credits for the current year, or
- 100% of the total tax after credits in the prior year
- See one exception below.
You can also avoid the penalty if the amount you owe is less than $1,000 as long as any estimated tax payments you made are timely.
Note: High-income taxpayers. If your adjusted gross income (line 11 of your 2024 Form 1040) is greater than $150,000 (or $75,000 if you're married and file a separate return from your spouse), you can avoid a penalty by paying at least 110% of your total tax from the prior year.
Lastly, you can pay your estimated tax online at the link provided: IRS Payments
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