Q. 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 investment income spread monthly through the 2023. So, no need to pay any estimate tax this year! correct?
A. Correct
Q. Also, in the unlikely 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 a Q4 estimate tax payment that would take my total 2023 tax payments above these amounts?
A. No. Quarterly payments must align, somewhat, with the quarterly income. But, being a "bit short" will result in a low penalty. The penalty is calculated on the shortfall from 110% of the 2022 amount, not the 2023 income/tax.
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