Safe harbor rules
You avoid underpayment penalties by paying at least the smaller of 90% of current-year tax or 100% of prior-year tax (110% if prior-year AGI was over $150K). The percentages apply throughout the year via timely quarterly payments.
Who needs to pay estimates
Self-employed people, investors with large capital gains, retirees with IRA distributions, landlords, and anyone with inadequate withholding from a W-2 job.
Have a specific situation?
Call the office and a human answers.
Common questions
- Can I just pay once a year?
- No. The penalty is calculated quarter by quarter. Paying the whole year's estimate in Q4 still triggers penalties for the earlier quarters.
Related
Tax Planning
Year-round tax planning for individuals and business owners. We model decisions before they become tax liabilities.
Personal Income Tax Preparation
Federal and state 1040 preparation with year-round planning. Serving individuals in Florida and all 50 states.
Filing a Tax Extension
Form 4868 extends filing to October 15. It does NOT extend payment. Penalties apply to unpaid balances.