Question

Do estimated tax payments qualify as tax withholding or refundable credits?

Forum|Forum|11 months ago
April 15, 2025
1 reply
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I applied a large enough portion of my 2024 Federal tax overpayment to my 2025 estimated tax to equal my total 2024 tax. Will this satisfy the IRS rule (from Pub. 505) that estimated tax payments are not required if my "income tax withholding and refundable credits will be at least 100% of the tax shown on the 2024 return"? I anticipate that my 2025 income will be greater than 2024 and need to know if I need to make estimated payments based on the higher income. Obviously, I don't want to if I don't need to.

Not A Product Question

RachelW33

Yes, the amount of your 2024 refund that you apply to your 2025 counts as estimated tax payments and will satisfy the IRS rule that estimates are not required if you have paid in 100% of your 2024 tax.

Note for higher income taxpayers:

If your AGI for 2024 was more than $150,000 ($75,000 if your filing status for 2025 is married filing a separate return), substitute 110% for 100%.

[Edited 04/16/25|5:39pm PST]

@tovaface

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