Question

How do I estimate my taxes using the annualized installment method? We have no idea what our income is going to be in 2022

Forum|Forum|4 years ago
April 14, 2022
1 reply
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TurboTax Self Employed Online

If you have no idea what your income will be you can pay 100% of your 2021 tax liability to avoid an underpayment penalty.

If your income looks to be higher, you can adjust your quarterly payments.

Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller.

Refer to Penalty for Underpayment of Estimated Tax

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