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Aren't prior year safe harbors only a concern if you owe more than $1,000?

There are four safe harbors, only one of which references prior year tax. That's our old friend, 100% of last year's tax, etc.

The others, all having to do with this year's tax:

Less than $1,000 due after applying only withholding credits. (Note that this means that if your total tax is less than $1,000 you need not make ES payments.)

You pay 90% of this year's tax in timely, equal ES payments plus withholding.

You meet the annualized income exception to the penalty.

All are discussed in Pub 505.

Rule Your Retirement Home Fool
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