1/2/2023 0 Comments Turbotax return estimator![]() ![]() #TURBOTAX RETURN ESTIMATOR PLUS#There are two keys to understanding the D-2210:įor most taxpayers (whose income is regular throughout the year) your total payment for each quarter (the total of withholding plus estimated tax payments) must equal 25 percent of either: (1) 90 percent of the current year’s tax obligation, or (2) 110 percent of last year’s tax obligation for the entire 12-month period. Form D-2210 helps you calculate your required quarterly estimated tax payments, plus any penalties resulting from underpayment of these required quarterly payments. The annualized income method allows you to make estimated payments based on the actual percentage of annual income received in a given quarter.ģ. However, if you tend to receive the bulk of your income late in the tax year, you are better off using the annualized income method and filing a completed Form D-2210 with your annual return. If your income is regular throughout the year, and you are not covered by withholding, then you would make four equal quarterly payments of estimated tax. OTR will not charge a penalty if these required estimated payments are made on time and the amount owed at the end of the year is less than $100.Ģ. ![]() Therefore, if your annual tax liability is not fully covered by withholding, or if you have no withholding, you must make quarterly estimated tax payments. For example, an individual who earns a significant amount of income in a given year must, by both federal and DC law, pay tax on that income as it is earned, rather than waiting until the next year, when the return is filed on April 15. ![]()
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