Estimated Tax Payments for non-self employed

[Ignatius]

I was self-employed for 8 years and over that time made quarterly estimated tax payments. I've recently become a 'permanent' employee, but in examining me and my wife's witholdings, I'm guessing that come tax time next year we're going to be short by right at about 10% of our total tax. I'm not worried about saving the shortage between now and then, I'd rather hold onto my $$ than let Uncle Sam do it. However, I know there's some penalty if the amount you're short on your total witholding is more than 10% of the total tax, and I'm right on the border if my estimates are right.

Can I make an estimated payment even though I'm not self-employed anymore? I'd like to send in what I think is about 3% of the total tax (ie 30% of my shortage) sometime in December/January just to be safe...

 

[Bernard]

In December, you can just call whoever handles the payroll for your employer and say, "I need to pay a little more Federal tax. Please withhold an extra $x.xx from my next paycheck." It's no big deal.

Bernard

 

[HornInDub]

Yes, you can make an ES payment even though you're not self-employed. However, if you have to make ES payments, you can't just "catch up" for under-withholding by making one in the 4th quarter, you are technically required to make ES payments pro-rata over the year (prevents people from making one huge ES payment in the last quarter to avoid penalties for the whole year). As mentioned above, the best way to do it is to have your employer withhold more out of your check as employer-withheld amounts are deemed to be paid in pro-rata across the year, even if done in the last month of the tax year.