I have used the Tax Calculator from the IRS website and my withholdings are correct, however I owe $6300 more than it says I should owe. How can that be? I save 18% of my salary in 401K to reduce my taxable income. The IRS calc says I should owe $1400 but Turbo Tax says I owe $7700. How can I verify what my withholding should be if the IRS and Turbo Tax are so far apart? I have all the recent software updates.
Your Form 1040 for 2022 is the final determinant of what your Estimated Tax + withholding (if any) should have been.
for 2023 your estimated tax can be your 2022 tax,
divided into four equal payment of 25% of that amount ( x 1.10 if your AGI is over 150,000).
Doing this, you will not be penalized on your 2023 tax return.
This is the prior year's tax rule for estimated tax.
April 15 is the deadline for the first 2023 Estimated Tax payment.
You must enter witholding you paid during the year into the software if paid to IRS. If you paid the IRS money quarterly or more those payments must be added to Personal>Deductions and credits>Estimates and other taxes paid>Estimates>start. Enter the amounts you paid during the year to the IRS.