The 110% of prior year's income tax applies to taxpayers with an anticipated income over $150,000. You would take your total tax due from this year's tax return on Line 24 of Form 1040. You would reduce that number by:
- Unreported social security and Medicare tax or RRTA tax from Schedule 2 (Form 1040), lines 5 and 6
- Any tax included on Schedule 2 (Form 1040), line 8, on excess contributions to an IRA, Archer MSA, Coverdell education savings account, health savings account, ABLE account, or on excess accumulations in qualified retirement plans
- Amounts on Schedule 2 (Form 1040) for
- Recapture of federal mortgage subsidy (Schedule 2, line 17b),
- Excise tax on excess golden parachute payments (Schedule 2, line 17k),
- Excise tax on insider stock compensation from an expatriated corporation (Schedule 2, line 17m)
- Look-back interest (Schedule 2, line 17n)
- Any refundable credit amounts on Form 1040 or 1040-SR, lines 27a, 28, 29, or 30, and Schedule 3 (Form 1040), lines 9, 12, 13b,13c, 13d, 13g, and 13h.
Once you have that number, you would reduce it by your anticipated withholdings for 2022 and divide by four to determine your estimated tax payments. Since it is a safe harbor, you would want to err on the side of caution, because if your withholdings and estimated taxes fall short of meeting the safe harbor, you may face underpayment penalties.
Massachusetts allows you to pay 100% of your prior year's tax as the safe harbor, it does not increase for higher-income taxpayers. This is on Line 32 of Form 1. They will charge underpayment penalties if you do not meet the safe harbor and owe more than $400 and have paid less than 80% of your total tax due. They have an estimated tax calculator here.
