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Subject:  Re: Possibility of current tax year underpayment Date:  10/15/2021  5:54 PM
Author:  MCCrockett Number:  133104 of 134396

One of the federal safe harbor rules is if you pay at least 100% of the taxes you owed for 2020 (110% if you’re considered high income) through withholdings by the end of 2021.

The CARES Act suspended RMD for 2020. I didn't withdraw any RMD from my IRA accounts resulting in a taxable income of $38,343.00 and income tax $2,375.00.

For 2021 my RMD was $141,541.00. I estimated that my tax liability for 2021 would be $34,752.00 for 2021. I scheduled quarterly payments of $8,688.00 through EFTPS. The last quarterly payment will be withdrawn from my bank account in December.

I have approximately $45,000.00 in unanticipated capital gains in 2021. As I've paid significantly more than 110% of my 2020 tax liability, have I satisfied the safe harbor rules?
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