What is the easiest way to calculate my 4th quarter estimated tax payment?
The easiest way to do it is to calculate your total liability for the year and subtract out the payments you’ve already made. If you have the cash, over-estimate by a small amount so you don’t waste time chasing down those last pennies. (If you’re talking about paying for your income tax, not your business quarterlies, then you can do it faster. You’re required to pay in either 110% of last year’s liability or 90% of this year’s by January 15. If last year’s wasn’t very high, use it as a “safe haven”. Just pay 110% of that, and you’ll get no penalty this year. That would be 110% x the amount on line 63 of last year.
