What i understand is if I pay in with my W-2 withholding plus estimated tax at least 90% of current year tax liability, I will not have a penalty.
Also, if I pay in 100% of last years tax liability, I should be okay? My penalty is calculating based on 110%of last years. is that based on my agi?
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Taxpayers with incomes over $150,000 must ensure their withholding and estimated tax payments cover at least 90% of their current tax year liability or 110% of their prior-year tax liability to potentially avoid underpayment penalties
Taxpayers with incomes over $150,000 must ensure their withholding and estimated tax payments cover at least 90% of their current tax year liability or 110% of their prior-year tax liability to potentially avoid underpayment penalties
What is your 2023 tax ? do you have withholding taken in 2024?
If your total 2024 withholding alone is 100 % of that amount ( 110% if your 2023 AGI is over $150,000),
you don't need to make estimated tax payments. This is the prior year's tax rule.
NOTE when Turbotax computes you need to pay estimates it assumes your withholding will not change from the current year.
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