Should I file W-4 to avoid paying Estimated Taxes every year for federal and state?
I've had to pay Estimated Tax Payments for years, since I have SSDI and rental income. I do not have a job, or W-2 forms. It's always been difficult to properly estimate the amount of Estimated Taxes I have to pay, as well as paying on time, quarterly.
Can I use a W-4 form to withhold taxes, so I wouldn't have to pay Estimated Taxes? How should I fill out that form?
After I submit the form, when does it go into effect - the next tax year, 2025? Does that mean I won't have to pay Estimated Taxes starting the first quarter when Estimated Tax is due on 4/15/25?
If I file a W-4, does that mean I won't have to pay Estimated Tax for California as well?
Comments
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Hello,
A W-2 Form is used by an employer to calculate your withholdings from wages. So, it would not make any sense for you to fill one out. You'll just need to keep making estimated payments with your current situation.
