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No. of Recommendations: 4
One year post debt payoff and no new debt.

Great job!

We will use the remainder of this year to save for a tax bill in the spring, as we are certainly not withholding enough.

Be sure that you are having enough withheld to meet a safe harbor, or you will need to save up for an underpayment penalty, too.

Safe harbors are:
- Owing less than $1000
- Owing less than 10% of your total tax due
- Withhholding or making estimated tax payments of at least 100% (110% if AGI is $150k or more) of the tax you paid for the prior year (2020)

If you can't increase your withholding enough to meet a safe harbor by the end of the year without impacting your 457 contributions, you can make an estimated payment that's enough to meet the safe harbor. You should make this payment on or before the date that 4th quarter estimated payments are due.

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