Estimated income lower than expected

[DJE2023]

Hello,

I have a quarterly estimated tax payment due in September and I've realized that my income for 2023 will be significantly lower than 2022.  Should I still pay the amount that is based on the 2022 income, or pay less?  Is there a way to determine the appropriate amount for a lower income, or is it best to just pay and then get a refund?

Thank you!

[JanetKT]

@DJE2023 

Since you income is lower than the amount you earned in 2022 you could recalculate your income for 2023 and base your estimated taxes on the lower number.

You can use the calculation tool in https://www.irs.gov/pub/irs-pdf/f1040es.pdf  or if you are currently a TurboTax customer you can following the instructions here https://ttlc.intuit.com/community/taxes/discussion/newbie-and-quarterly-estimated-taxes-for-2023/00/....

That way you do not have to wait for a refund. If your new amount is lower just tax your new estimated liability subtract out what you have paid for the first two and divide by two for September and January.

Let us know if we can be of further assistance. Thanks for joining our live event.

Janet CPA