Extra tax bill @ Amazon?
Looks like Amazon didn’t withhold enough Federal tax for 2021. Confirmed with at least one other person. Is it common every year and do people estimate their taxes and make quarterly payments? Note I didn’t have any capital gains and it’s my first yr at this place. #tech #amazon TC: 225 USD YOE: 7
Rsu by default at only withheld at 22% tax rate. Bump that up to your rate or max it to 37%
I owed 3-4% of TC on the federal side. It wasn't RSUs either because those were sell-to-cover at >40% tax rate...
You are responsible for keeping track of your withholdings and estimating your tax liability. Mine have always been severely under-withheld and I contribute extra each pay check AND pay separate estimated tax payments as the year goes on and I see how things are shaking out.
You should be able to add extra withholding to each paycheck. If you do that you don’t have to worry about estimated payments. Look up w4 calculator
This^
Also any withholdings you make are considered spread out throughout the year. Estimated tax payments have to be made quarterly or you get penalized