Hello, I moved to Arizona in 2024 and this is my first year filing taxes. My gross wages for the year are in the low $100k (single person, filing as single). I expect it to be about the same for 2025. My company withheld about $3k for state tax for 2024 (box 17). When working on my 2024 taxes, turbo tax is prompting me to estimate quarterly tax payments for 2025. Given that state taxes are already being withheld, do I need to this?
I saw the rule that says you must pay estimated taxes if your income is $75k as a single person. However, it doesn't say if that still applies if taxes are already being withheld by the employer. This seems like double dipping. This is the first state I've lived in that seems to require quarterly payments so I want to make sure I understand this. If I do have to pay this quarterly, is there a true up each year?
This page says you must page estimated taxes if gross Income is >$75k, but also seems to say that is only the case if you are self-employed, which isn't the case for me. https://turbotax.intuit.com/tax-tips/small-business-taxes/estimated-taxes-how-to-determine-what-to-p...
I can't seem to find a way in the software to opt out of doing the quarterly payments.
Thanks for your help
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No. If taxes are already being taken out of your wages in an amount that will cover your tax liability and you do not have other income that is taxable, then you do not have to make additional quarterly payments.
If you are not having enough taxes withheld, then it is best to complete a new AZ W4 form and give it to your employer and have them withhold more taxes.
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