Adjustments to Quarterly Tax Payment

Forum|Forum|1 year ago
August 28, 2024
1 reply
0 views

Our income for tax year 2023 was significantly higher than previous years and 2024 estimated income is similar to years prior to 2023. The current quarterly tax payments (based on my 2023 tax return) are significantly higher than previous years. Can you make quarterly tax payments lower than the amount projected on my 2023 tax return, or do they have to be the amount specified on the return?

Jackstar221

Hi,

For 1040 returns, a substantial understatement penalty is assessed if you pay less than 10% of your tax liability required for your return or $5,000, whatever is higher.

Here is a link to the IRS withholding estimator to help you determine how much you may owe for a tax return: Tax Withholding Estimator

If income was unusually high in 2023 and you expect your income to be lower in 2024, you can adjust 2024 to make a lower payment in 2024.