2023 tax payment year end

[s4442jlp]

Maybe simple  or complex. . .

Resulting from an end-of-year substantial income from dividends, capital gains, and RMD from my IRA, I will allocate the necessary amount of RMD withdrawal funds for taxes; however I want it (both federal and state) to be 110% of last years tax. Without prematurely forecasting the 2023 total income which will/may be substantially less than 2022 I question what amount the 110% is applicable to . . . bear with me a moment.

Let's assume for 2022 filing I had paid $70K (payments/credits) netting an owed amount of an additional $7K when filed. TT estimated quarterly tax payment was $3700 each, a total of $14.8K. So, that said, would my 110% exposure be based on the total $77K or simply the amount that wasn't prepaid when filed (the $14K?)

Thanks for any insight,

JJ

[rjs]

It has to be 110% of the amount on Form 1040 line 24 on your 2022 tax return.

[NCperson]

@s4442jlp to avoid under payment penalty, you have to have paid 110% of last year's tax (line 24) or 90% of this year's tax (also line 24), whichever is lower......

since you had significant income in 4Q, if necessary, you can just make a payment by January 15, 2024 and then complete form 2210 (checking box C) at tax time so that any underpayment penalty is minimized or zeroed out.