Jan 11, 2023Liked by Andre Nader

Shortcut - just use the "Federal Withholding - Taxable Wages" amount which represents how much wages are subject to federal tax (i.e., after pre-tax deductions).

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curious how this factors in the tax underpayment penalty, especially in the years when income is less predictable (with volatile stocks)


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I'll generally spot check my taxes in Q3 to see how far off things are. As long as you pay ~90% of the previous year's taxes you are generally fine. If it looks like you are going to be way off you can increase withholdings going forward or send the IRS a quarterly check.

As long as you are not too far off the penalties I have personally seen have been pretty small.

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