The IRS requires quarterly payments if you expect to owe more than $1,000 for the year or if you owed tax this year. Since you do owe tax this year and expect to owe more than $1,000 next year, you will need to make estimated payments. If your total tax due for this year was $1,000, if you pay at least that much in quarterly payments, you would be exempt from the penalty by filing form 2210.
Are you saying that I could already owe an underpayment penalty because of my 2022 return, unless I send in this form?
My return has already been accepted by the IRS...I'm afraid to add anything to it unless absolutely necessary. I thought I would be okay since the final amount I owed was $548? The SE tax due initially was $1100, but after the EIC was applied I think, it reduced it to $548. Is it the final number that matters as far as that $1000 rule, or the number before credits are applied?
I'm sorry, I should have provided these from the start. These were my 2022 numbers, and 2022 was my first year filing ever, if that matters:
9,000 income before any adjustments or deductions
7,700 after expenses deducted
6,191 adjusted gross income (after 1k in health insurance premiums + that 50% SE tax thing deducted I think)
0 taxable income
1,101 total tax
553 tax payments/credits (EIC I think)
548 payment due
Thank you again for your time, I am trying my best to understand all this.
