Hi Derionnaaa, thanks for posting an event question.
In a nutshell, the formula of Form 1040 is as follows:
determine your taxable income > tax liability (the total amount of income tax owed from taxable income > reduced by what you have paid in from withholding, such as the amount already paid to IRS from your employment paycheck by your employer > reduced by various credit allowed by tax rules, such as dependent credit (if you have dependent), various education credits (if you are in college and eligible) etc. > deriding a final number - balance due or a refund.
Through estimation such as TurboTax Tax Castor tool,
https://turbotax.intuit.com/tax-tools/
generally, you must make estimated tax payments for the current tax year if both of the following apply:
- You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits.
- You expect your withholding and refundable credits to be less than the smaller of:
- 90% of the tax to be shown on your current year’s tax return, or
- 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.
Estimated Tax FAQs
https://www.irs.gov/faqs/estimated-tax
Hope the above helps.
Thank you,
Kitty
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
