Disclaimer
Estimates for educational purposes; not tax, legal or investment advice.
TaxPace shows a planning estimate of federal income tax, self-employment tax, and state tax, plus an estimated safe-harbor payment and underpayment penalty. It does not file a return, submit a payment, or tell you that you must pay a particular amount.
North Carolina is calculated from the state's flat rate and standard deduction used by the engine. Other states use the 2026 published rate schedule, including brackets where the state has them. That is not a state return. The penalty uses a flat 7% rate because later rates are not announced. If you enter profit for each Schedule AI period, required installments follow the annualized-income method. Otherwise they follow the regular method.
The copilot explains figures produced by that engine. If a model is connected, it is instructed to call the engine rather than invent amounts. Check anything that matters with a qualified preparer.