Deductions & credits


@Carl wrote:

Don't worry if you overpay your tax liability. At tax filing time any over payment will be refunded to you on your 2022 tax return.


I would worry because any overpayment is essentially an interest-free loan to the IRS. 

 

 

Here is how to avoid an underpayment penalty:

 

Avoid a Penalty

To avoid a penalty, pay your correct estimated taxes on time. 

You may avoid the Underpayment of Estimated Tax by Individuals Penalty if:

  • Your filed tax return shows you owe less than $1,000 or
  • You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less.