early tax payment
In our 2021 federal taxes, we paid the IRS about $600 additional to what was withheld. Our tax adviser said we should pay in advance for our 2022 federal taxes. So for 3 quarters during 2022, we sent the IRS a total of $450 with another $150 that could be sent in on Jan. 17, 2023. My question is since we earned considerably less in 2022 than in 2021, should we still send in the final quarterly advance payment?
Terry Says
Consult your tax advisor! Maybe you don’t need to make this extra payment. Show him your income for the year, and the amount already paid (including the overpayment last year). That’s the only way to figure this out.
The requirement is that you pay in at least 100% of last year’s tax obligation, or 90% of what you might owe for the current year. (And don’t forget that you’ll have to pay taxes on retirement plan withdrawals unless they were withheld.)
