通常,current year tax只有在第二年报税时才能精确知道,所以确保进入safe harbor的方式是,通过报前一年的税得到精确的last year tax,然后让今年的withholding满足 withholding > 110% * last year tax 当然,假如能对current year tax有很好的预估,那么使用safe harbor的另外两个关于current year tax的条件可能...
It is possible to avoid penalties for missed estimated tax payments by meeting “safe harbor rules” from the IRS, explained Sheneya Wilson, a certified public accountant and founder of Fola Financial in New York. You meet the safe harbor rules by paying at least 90% of the current year's...
Well, that's complicated, but the bottom line is that you want to be in the “safe harbor.” Being in the safe harbor won't keep you from having to pay more tax in April, but it will avoid any penalties or interest. Most docs simply multiply their prior year's tax bill by 110%,...
A simple way to qualify for the safe harbor rule.To qualify for the Safe Harbor Tax Rule and avoid penalties, take your previous year’s tax obligation, divide by four, and make four equal payments by the estimated tax deadlines. Add 10% to last year’s tax total if you are a high ...
For those who anticipate earning significantly more in a given year, theannualized income methodmay be useful, as it helps ensure that your estimated tax payments more accurately reflect your income as it is earned, rather than simply spreading the liability evenly across the year. ...
There’s another safe harbor, one that’s especially useful if you’re not sure how much you’re likely to owe in taxes for 2024: You can pay 100 percent of your 2023 tax bill (paid in a lump sum by the first deadline below, or spread out over four or more payments by the deadl...
Worst case, you should be able to use your missing refund as a tax credit for the upcoming tax year. The IRS is not out to get you. It realizes the tax code is complicated, errors, and over and under payments happen all the time. I've spoken to a handful of IRS agents on the ...
Unsure about estimated tax payments? We'll guide you through determining whether you need to pay estimated taxes and how to calculate the right amount to avoid surprises at tax time.
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当然,假如能对current year tax有很好的预估,那么使用safe harbor的另外两个关于current year tax的条件可能预缴的税更少。 有的读者希望在及时足量的情况下,尽量减少withholding,因为钱有时间价值,在前几个季度多上缴的税相当于给IRS的无息贷款;有的读者希望足量缴税,这样不需要担心因为投资等其他...