1k penalty seems high for those numbers. Safe harbor is at worst 90% of 70k. What was your fed tax last year?Nothing was withheld in Q4 for the bonus. The tax software says we paid around 50k in taxes, but owed 70k for 2023. Hence the 20+k payment due now plus nearly $1k penalty..I think it may not be filled in correctly. Aren't the numbers supposed to be cumulative, ie 50k, 150k, 300k ?
Anyway, if you got a bonus in q4 were there withholdings taken? That might have brought you over safe harbor (ie more than 100 or 110% of tax you paid last year) and so there wouldn't be any penalty anyway. Is the software saying you have a penalty?
Is there a 4th column in that screenshot? did you put 300k income in that box?
Statistics: Posted by bongo — Wed Apr 10, 2024 2:48 pm — Replies 5 — Views 243