Estimated Quarterly Payments

[JotikaT2]

It sounds like you want to know how the estimated quarterly payments are calculated.  If so, please see this link for more details.

If you are trying to understand more about when you might need them, this link breaks the details out more to assist.  Essentially, estimated quarterly payments are needed if you have a business or earn income from other sources where income taxes are not withheld, but which are high enough to generate a tax liability.  The estimated tax payments are intended to pay for the taxes due as the income is earned.

[MAJ]

Thanks for the reply.  Since my Federal tax was way less than $4000 and my AGI was way less than 150,009, and my experimental tax for 2025 (calculated with TT version for 2024) is $37,036, I could probably get away with 90% of $37,036.  The $41,740 estimated payments is exactly 110% of $37,036.  You would think that TT suggest 90% of 37,036.

Oddly enough, California has the same rule (90% of estimated current year, or 110% of prior year) and the vouchers total only 90% of current year estimate.  Very strange!

[Hal_Al]

TurboTax (TT) uses the 100% (110% if needed) method, because it is the IRS "safe harbor" method. That is what you are initially "offered," in TT.  You are then asked if you want to "adjust your income or deductions".  If you answer yes, you will be given the chance to enter your 2025 estimates and calculate estimates based on that.  At end of that interview, you will be given the choice of the three methods.  TT will pre-check the 100% /(110%) box. 

I'm not familiar with California. But, the three states that I do prepare work similarly.