The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  https://boards.fool.com/hey-pete-if-i-pay-110-of-my-2013-tax-will-i-31178062.aspx

Subject:  Re: Minumum prepaid tax to avoid underpayment Date:  3/22/2014  8:02 PM
Author:  stockmover Number:  120544 of 129771

Hey Pete,

If I pay 110% of my 2013 tax, will I avoid underpayment penalty?

Yes ... if you pay 110& of your 2013 tax liability. You will qualify under the safe harbor provisions. IIRC, I believe you can pay less than 110% in 2014. I believe the IRS allows that if you paid in 2014 at least the amount you had withheld in 2013 you will qualify and avoid an underpayment penalty. If perchance I'm wrong, I'm sure the tax pro's will weigh in.

Rich
Arizona
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us