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Financial Planning / Tax Strategies
|Subject: Re: Estimated Payments||Date: 11/26/2012 7:07 PM|
|Author: TMFPMarti||Number: 116981 of 120812|
I just found out today that the "safe harbor" provision only applies to folks with an AGI over $150K.
That makes two of us.
I assume the safe harbor you're referring to is basing this year's estimated tax payments on last year's tax.
If last year's AGI was under $150,000 four equal timely ES payments for this year satisfy the safe harbor, and no ES penalty will be charged regardless of how much you end up owing April 15.
If last year's AGI was $150,000 or more, this year's ES payments must equal 110% of last year's tax to meet the safe harbor. Details about all your options for avoiding the penalty are in Pub 505.
Your state may have different requirements.
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