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Level 2
March 6, 2022
Question

I have a taxpayer who needs to pay 2022 estimates based on 110% of the prior year's tax but the software will only caclulate at 100%. Is there a way to correct?

  • March 6, 2022
  • 1 reply
  • 18 views
2022 Estimated Federal taxes
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1 reply

George4Tacks
Level 15
March 6, 2022

Answers are easy. Questions are hard!
Level 2
March 6, 2022

Thanks for the reply. The income for 2022 is expected to be higher than 2021, so if I do that, it is using the estimated 2022 income. I want to create estimates based on 110% of 2021 income but it is only calculating 100% of 2021? I don’t understand why it doesn’t calculate 110%?

sjrcpa
Level 15
March 6, 2022

Because their 2021 income must be below the amount required for a 2022 110% safe harbor.

The more I know the more I don’t know.