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mhfolliet
New Member

I under estimated my 2022 self employment tax quarterly payments, paying the 2021 amounts (15k$) instead of the more accurate 50k$ . Should I catch up this week ?

I had much higher ernings in second half of 2022 and didn't pay attention. What minimum should I pay by 1/17/23?
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I under estimated my 2022 self employment tax quarterly payments, paying the 2021 amounts (15k$) instead of the more accurate 50k$ . Should I catch up this week ?

There will be no federal penalties for not paying in enough taxes during the year if withholding and timely estimated tax payments equal or exceed 100% of your 2021 tax (110% if your 2021 adjusted gross income was more than $150K), "2021 tax" includes both the self-employment tax, the regular income tax and certain other taxes less certain credits. The line numbers to include are in the 2022 instructions for line 8 of form 2210 but the 2022 instructions aren't available yet (1/10/2023). Your 2021 Turbotax file would also contain the number in the estimated tax section.

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you should be paying enough (the goal)  if you used Turbotax to calculate your estimated taxes for 2022 using your 2021 income, the 100/110% option and made timely payments. you'll still have to make that 1/17/2023  payment (4th quarter). in this case, you can pay the balance due now or anytime through 4/17/2023 without penalty.

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if not, pay now to bring your payments up to the goal or above. the balance can be paid on or before 4/17/2023. you may be subject to underpayment penalties for some quarters. 

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if you have a state income tax, their laws vary for determining required estimated tax payments 

 

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