I retired and found that the pension didn't take out enough taxes for me last year. I owe lots of fed and state tax for 2022. Is this due at once or are payments OK?

[frduke]

MD state

[JulieS]

Yes, it is all due on April 18,2023, but you can make payments if you need to.

If you still have a balance due on April 19, there will be penalties and interest, but both the IRS and the state of Maryland will work with if you just can't pay. 

You can set up an installment plan with the IRS through TurboTax. Watch for that option as you go through the File section of TurboTax. The state of Maryland also will accept payments. Click here to learn more. 

To prevent an ongoing problem, you can contact the companies that manage your payments and have federal and state taxes withheld. You also have the option to make estimated tax payments for 2023. 

To set that up in TurboTax:

1. Open your tax return and  select Federal on the left side menu.
2. Click on Other Tax Situations.
3. Expand Other Tax Forms and find Form W-4 and Estimated Taxes, click Start or Revisit to the right.
4. Answer No to the question Do you want to change your W-4 withholdings for 2022?
5. Select Review Now on the next screen.
6. Answer the questions about your 2023 filing status, expected income, and deductions.
7. On the screen titled, Which Method? Select one of the 2023 options, not the first option.
8. When you come to the Print Vouchers? screen, answer Yes and the program will include your 2023 1040-ES payment vouchers when you print a copy of your return later.
9. To add Maryland estimated payments, select that option near the end of the Maryland state interview.