IRA distributions are not taxed by NJ.
To avoid an underpayment penalty, you should make estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
TurboTax (TT) can prepare the payment vouchers. In your 2016 software, enter at:
Federal Taxes or Personal
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button
If your goal is just to avoid the underpayment penalty, then paying 100% of the prior year tax liability is the “safe haven”
