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If you have more than $150,000 AGI, but your income DECREASED this year, what is the safe habor rule? Is it 90% of current year's taxes?

The safe harbors operate independently. IOW, you need meet only one to avoid the estimated tax penalty. If you timely prepaid 90% of this year's tax or your 2002 balance due is less than $1,000 after applying withholding credits, you'll have no estimated tax penalty regardless of what happened in 2001.

Phil Marti
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