Hi,
1)Here is the IRS withholding estimator calculator, that you can use to calculate to see if you will be due a refund, or owe an amount to the IRS for the tax year. https://www.irs.gov/individuals/tax-withholding-estimator Please take about 15 minutes to fill it out.
In addition, here is a GA state calculator for 2022 and 2023, that you can use to see if you will be expected a refund, or owe money to GA. https://www.forbes.com/advisor/income-tax-calculator/georgia/ Please also fill this out. These two calculators will give you an idea to see if you owe money to the IRS, and GA.
2)Here are the rules for avoiding the substantial underpayment penalty: The IRS will not charge you an underpayment penalty if: You pay at least 90% of the tax you owe for the current year (in estimates), or 100% of the tax you owed for the previous tax year, or. You owe less than $1,000 in tax after subtracting withholdings and credits. The best way to plan for these estimates are to use these calculators, and to sign up for making electronic estimated tax payments to the IRS through https://www.eftps.com/eftps/
Here is a link for making estimated tax payments through GA https://dor.georgia.gov/make-estimated-payment-gtc
It is best to plan for these estimates early on in the year, and make the payments each quarter. Rather than making a large payment at the end of the year, which you can also do if you haven't made any estimated tax payments yet.
Thank you,
John
CPA
