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Level 2
posted Apr 5, 2023 9:26:38 AM

Estimated Tax calculation

My estimated almost doubled because I'm having to cash out retirement to pay for my living expenses. How's the best way to lower that amount? 

0 3 889
3 Replies
Employee Tax Expert
Apr 5, 2023 9:35:37 AM

You're not required to make estimated tax payments; we're just suggesting it based on the info in your return. If you feel they're not needed for next year's taxes, you can shred them.   Or if you would like to adjust them for next year, you can do that too.   Have TurboTax Calculate Next Year's Estimates  

Level 2
Apr 5, 2023 9:38:34 AM

How do I avoid a penalty? I was in the hospital last September and October. I didn't pay and got a penalty. I've filled out the form for a refund.

Expert Alumni
Apr 5, 2023 9:50:53 AM

Yes, you can avoid an underpayment penalty by making sure enough is withheld or paid during the year.

 

There will not be an underpayment penalty if:

  • Your filed tax return shows you owe less than $1,000 or
  • You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less.

You can use TurboTax to help you figure out how much to pay. Click here for more information.