If my withholding has been less through the year, should I pay estimated tax for just Q4?

[vinodr777]

I would like to understand estimated taxes better. I am employed at a company

Due to an issue in my w4 form, it seems I have been underwithholding on my taxes. I am heading towards not paying 100% of my prior year's tax obligation.

At this point, to avoid an underpayment penalty, could I pay a lump sum estimated tax payment before the Q4 deadline to match the difference and ensure I have paid at least as much as 100% of my prior year obligation?

I have read that estimated tax to be paid evenly throughout the year.. So trying to understand if making a Q4 estimated tax payment would even help at this point.

[Mike9241]

if possible, the best thing to do is to submit a revised w-4 so your withholding for the year will be 90% of your 2023 tax or 100% off 2022 tax. 110% of 2022 tax if your 2022 adjusted gross income was $150,000 or more.

paying a 4th quarter estimate won't protect you from underpayment of taxes for the first three quarters. increasing your withholding as described above will. 

[vinodr777]

Thanks for the response. Yes that makes sense.

If working a W2 providing job, how does the IRS calculate the tax burden for each quarter? Is this automatically calculated by turbotax?

If I realize that I will not be able to meet the 100% of last year tax burden requirement, is it still worth paying some estimated tax just in Q4 so that I at least will not have a penalty for this quarter?