Lump sum income

Forum|Forum|2 years ago
October 25, 2023
1 reply
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I received a lump sum from the sale of the company I work for. I’ve been paying estimated quarterly tax payments on the add’l income but I don’t understand why the estimated quarterly state tax payments are a lot more than the estimated federal tax payments. I live in Georgia.

Ask the Experts - Extension - Sept 2023

Cindy4 12

Employee Tax Expert

Hi @Johnny727 !

I'm not sure how the estimated payments were determined, but potentially federal withholding is being factored in on the federal estimates that is offsetting some of the tax burden from the lump sum. Perhaps the Georgia estimates are not factoring in any Georgia withholding to offset the tax on the lump sum.

Hope this helps!

Cindy

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