My 2023 paycheck tax witholdings (both Federal and State) will very likely exceed 110% of my 2022 tax amounts.
If so, I understand that there will NO risk for any tax underpayment fee when i file my 2023 tax return next year, even though i have some additional investement income spread monthly through the 2023 (mostly from bank interest). So, no need to pay nany estimate tax this year! correct?
Also, in the unlike case that my 2023 W2 income withholdings (excluding payroll tax) end up a bit short of the 110% amounts, can we still avoid underpayment tax penalty, by just making later (once I know this in mid December) a Q4 estimate tax payment that would take my total 2023 tax payments above these amounts? ... it or would be too late by then given that some of my non-paycheck income (e.g. interest payments) occurred early in 2023, in which case i need to dig into the details of the Oct. 16 payment deadline... (Note that my 2023 income will not exceed the $1M. So, safe harbor would still apply to me)...
Thanks!
