How Form 2220 Taxable 2023-2024

My name is Keith Hall. Welcome to another NASC minute. Today, I want to talk about estimated tax payments. The question is, do you really have to make those quarterly estimated tax payments? Well, you may be surprised, but no, you're not required to. No one's gonna call you, no one's gonna send you a reminder email. You don't get a bill from the IRS, so you don't really have to. Now, I say that tongue-in-cheek because if you don't make those payments, it's gonna cost you. So really, the question is, how much should those payments be? Certainly, make them, but always make as little as possible to avoid any underpayment penalties. So don't give your money to the IRS any faster than you have to, but certainly don't incur any penalties. The IRS has three safe harbors that you can go by and avoid any penalties. The first one is if you pay in at least 100 percent of your tax from last year, you'll have no penalties and no interest. Second, if you pay in at least 90 percent of what you end up owing, you'll have no penalties and interest. So it's kinda like just getting close. The IRS knows it's an estimate, so if you get close, that's okay. And lastly, if you end up owing less than a thousand dollars, then you'll have no penalties, also kind of a get close. Now, that first method, paying in exactly what you had last year, is the easiest. You've got last year's tax return. You know exactly the total tax that you paid, not the amount you had to write a check for. With the total tax on your tax return, divide that by four and that's your quarterly payment amount. The second option is a little...