TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Employee

Solved

Estimated taxes safe harbor federal and North Carolina

Forum|Forum|2 years ago
March 31, 2024
1 reply
0 views

I know that if I pay 100% of the tax owed in 2023 as estimated payments for 2024 that I am safe from penalties and interest when I file for 2023. Are the rules the same for estimated state taxes for North Carolina?

TurboTax Home & Biz Windows

Best answer by LenaH

When you file for 2024, you will owe a underpayment penalty if the total of your North Carolina income tax withheld and timely estimated tax payments do not equal at least the smaller of:

90% of your 2024 tax, or
100% of your 2023 tax

D-422 Instructions

LenaHAnswer

When you file for 2024, you will owe a underpayment penalty if the total of your North Carolina income tax withheld and timely estimated tax payments do not equal at least the smaller of:

90% of your 2024 tax, or
100% of your 2023 tax

D-422 Instructions

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

So there is no income level for north carolina where estimated payments have to be 110% of the previous year's total tax, like the Federal tax code requires?

Employee

"100% of the tax owed in 2023 as estimated payments for 2024"

The statement of OP is not correct

That's not sufficient to avoid any IRS penalty.

If your total 2024 withholding alone is 100 % of that amount ( 110% if your 2023 AGI is over $150,000),

You don't need to make estimated tax payments.

In other words, the rule applies to withholding, not estimated tax.