Estimated payments for 2025

[TC1970]

Hi, this is the 1st year I have had to owe taxes ($4k) because of prize winnings and earned interest on CDs. I am attempting to set up estimated tax payments for 2025 so that I do not have to deal with this again. I don't expect to have prize winnings but I do expect CD interest. Is it better to over estimate and get a refund or should I adjust my income  lower to compensate for the lack of prize winnings? Can I set up automatic withdrawals from my checking account to pay the estimated tax or do I have to take it out of my pension checks? Sorry, I am so new to this and reading up on the rules has just caused more confusion. Thank you in advance for any guidance. 

[fanfare]

if you can adjust withholding on pension early enough it is better to pay your tax as you go through withholding.

figure your 2025 tax and set withholding to be at least 90% of that.

You will not have to make Estimated Tax payments

It doesn't hurt to overestimate (within reason) to avoid penalties on Tax Day next time.

@TC1970