If not enough taxes are withheld when you file your taxes, then you will be hit with underpayment penalties!! It would be advisable to continue with estimated taxes if your retirement accounts & social security have not enough tax withheld. Alternatively, you can ask them to withhold more to avoid underpayment penalties.
This penalty specifically applies when the total tax payments made during the year fall short of either 90% of the current year’s tax that’s owed or 100% of the previous year’s tax. For those earning a high income, this minimum required payment increases to 110% of the prior year’s tax.
@pa210 Thanks for the question!!
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