Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Recommended Estimate Payments Don't Match Previous Year Tax Liability

jaygar
Level 3

The estimated payment amount that is listed on the Client Letter adds up to more than 100% of the prior year tax liability.  Any idea why the software suggests more?  It isn't a lot more, but the 2019 tax was $311,931, but the Client Letter says to pay in $83,300/quarter or a total of $333,200.  Why would it do that?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
TaxGuyBill
Level 15

AGI is over $150,000, which means it uses 110%

Also, some credits adjust that amount.

 

View solution in original post

2 Comments 2
TaxGuyBill
Level 15

AGI is over $150,000, which means it uses 110%

Also, some credits adjust that amount.

 

PhoebeRoberts
Level 11
Level 11

Your client's safe-harbor estimates are 110% of prior year tax, because they have AGI > $150k.

You might want to review the Form 1040-ES instructions, where that information appears.