Do you need to revise your final estimated payment?

Do you need to revise your final estimated payment?

The last installment of your 2016 estimated federal income tax is due January 17, 2017. As a general rule, to avoid penalties you need to pay in the lesser of 90% of your 2016 estimated tax liability or 100% of the tax shown on your 2015 return when your adjusted gross income (AGI) is less than $150,000. When your AGI is over $150,000, you're required to prepay the lesser of 90% of your 2016 estimated tax liability or 110% of your 2015 tax liability. What if you haven't paid in enough? Increase your last installment to make up for the underpayment. Contact us for help with the calculation.