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I just read the section on estimated payments, and I'm a little confused about what to do for 1998. I was a student in 1997, and my total tax liability was under $1500 (and owe less than $500 on April 15th, so no penalty).

However, I now have a real job and I estimate my tax liability for 1998 will be around $11-13k (single, no dependents, renting, making $48k and very little capital gains, am I miscalculating that?)

My question is: by what I read, it seemed that as long as I have $1500 withheld on my W2 (1997's liability), I won't have underpayment penalties, and get a return on the $10k I'm not paying in advance. Is that true?

Should I tell my employer to withhold very little? (I have the discipline to invest what would not be withheld)
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