clydewolf

Rules for estimated tax payments:

There are 3 safe harbors available to avoid any penalty for having too little paid for income tax via tax withholding, or estimated payments.

The first safe harbor is quite easy, you know the target amount:
- Will withholding plus credits equal the tax on 1040 line 46 of the previous year's tax return?

The second:
- Will withholding plus credits be $1,000 or less than the tax on your current tax return, 1040 line 46.

The third:
- Will withholding plus credits be at least 90% of your current tax, 1040 line 46.

If you can answer YES to any one of these situations, you are not required to make estimated payments.

But then we are to pay the tax as we receive our income....