An unequal 4th quarter estimated tax payment would require filing form 2210 schedule AI to avoid an under withholding penalty.To correct the cash flow issue, eliminate the extra withholding intended to account for the year end bonus, and then make a 4th quarter estimated tax payment after the bonus is received.
Many people would prefer to avoid schedule AI. The OP might try a pro forma schedule AI for last year to see if he would also prefer to avoid it. A dummy run will also show what information would need to be tracked during the year to make the filing easier.
Statistics: Posted by Epsilon Delta — Mon Feb 17, 2025 11:02 pm
