Taxes and planning · Taxes
What does "Pay … to be safe" on the Taxes page mean?
Until you tell DeskOps two things, the headline says "Set aside by" the next deadline: the tax on this year's profit so far, spread over the deadlines left, and it says plainly that payments you already made aren't subtracted. Enter last year's total tax and the federal estimated payments you have made in the Forecaster and save them. The headline then shows what to pay by the next deadline to be safe from the federal underpayment penalty: a quarter of last year's tax for each deadline so far (110% of it when last year's income was over $150,000), less what you have paid. Beside it you still see the best estimate of this year's tax. It covers the federal penalty only, not your state, and you make the payment yourself. Under it, one line gives your state's own installment rule where DeskOps has read it from the state (for example Georgia's 70% of this year's tax), or says it hasn't been verified for your state.