Safe harbors, annualization and how to stop overpaying the IRS all year.
Know your safe harbor
Paying 100% of last year's tax (110% above $150,000 AGI) protects you from underpayment penalties.
Annualize uneven income
Seasonal or lumpy income can use the annualized method to match payments to when income was earned.
Coordinate with withholding
Withholding is treated as paid evenly through the year, a useful tool for late-year catch-ups.
This article is general information, not tax advice. Every situation is different. Talk to your advisor before acting.
- #estimated-taxes
- #irs
