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top333
New Member

I believe that my tax estimates are set too high for 2022. I had a windfall for 2021 in stock. Can I lower estimates?

 
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2 Replies
ColeenD3
Expert Alumni

I believe that my tax estimates are set too high for 2022. I had a windfall for 2021 in stock. Can I lower estimates?

Yes, you can reduce your estimated payments. Situations change from year to year and you can adapt your payments to those changes.

I believe that my tax estimates are set too high for 2022. I had a windfall for 2021 in stock. Can I lower estimates?

since you'll be cutting your estimates for 2022. your withholdings and timely estimated tax payments will have to be at least 90% of your 2022 tax to avoid Federal underpayment penalties. if you have a state income tax the rules may be different.

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