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Old 11-19-2005, 10:55 PM
Big TR Big TR is offline
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Join Date: Nov 2003
Location: Chicago, IL
Posts: 3
Default Re: Question regarding Quarterly estimated taxes (yes, I do pay them)

Your estimates don't have to be equal, but typically, they are. For those with escalating income year over year, estimates are paid in using 110% of the prior year income tax liability. As long as you pay this amount, I believe you can avoid paying penalties for underpayment of your tax liability.

Go ahead and make a larger payment. This will help mitigate the penalties somewhat.
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