Our IRS-supported approach

How this calculation works.

EstimatedTax follows a predictable prior-year safe harbor path. It checks the same annual target four times using withholding and payments that have already happened, without forecasting the rest of your income.

Prior-Year Safe Harbor with Actual Withholding

Three rules work together

  1. Set the annual target.Start with 100% of prior-year tax, or 110% when the IRS higher-income threshold applies.
  2. Check one-fourth at each installment.The IRS Regular Installment Method creates cumulative targets of 25%, 50%, 75%, and 100%.
  3. Count only confirmed payments.Subtract federal withholding already shown on your paystubs, estimated-tax payments actually made, and any prior-year refund applied to this tax year.
Minimum estimated payment nowcumulative target minus confirmed withholding and payments

Why this fits uneven income

No current-year tax forecast is required.

RSUs, bonuses, stock sales, and property gains can change your final tax bill without changing this prior-year target. Following each installment keeps you on this selected safe harbor path even when current-year income is unpredictable.

The Annualized Income Installment Method may allow a different or smaller schedule, but it is an optional alternative and is not needed to use this approach.

Important filing step

Keep your paystubs for Form 2210.

This app treats withholding as paid when it was actually withheld, rather than using the IRS default equal allocation. To use that treatment on your return, check Form 2210, Part II, box D and attach the completed form.

Tax software or a preparer may ask for withholding by period or date. Keep the paystubs used for each quarterly check. EstimatedTax helps plan payments; it does not prepare or file Form 2210.

Official references

Read the IRS rules

This product supports a defined planning workflow and is not tax-return preparation, an IRS determination, or professional tax advice.