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Estimated tax calculation help

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  • Estimated tax calculation help

    For better, my yearly income continues rise. This year I had a "windfall" at the end of the year in the form of the last couple months amazing stock runs (different conversation for a different time please). As such, my strategy of accounting for tax payments via withholdings from my w2 employment may fall short. I am trying to estimate what I need to pay for q4 estimated payments so as to get myself into safe harbor. My question is as follows:

    Does SSN overpayment count as a "credit" against my federal income tax underpayment in the eyes of the IRS? (i.e, do I take the net of medicare, SSN, and federal income tax when looking for safe harbor or I do look at federal income tax exclusively?). The reason for SSN overpayment is SSN withheld from my moonlighting side gig.

  • #2
    Yes, excess social security tax withholding does count as a credit for this purpose.

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