Finally figured out quarterly estimated taxes after a math fail last April

I miscalculated my quarterly payments by $1400 last year and had a panic moment with the IRS notice, but this quarter I dialed it in perfectly using the safe harbor rule and even had a $200 buffer left over - anyone else use the 110% trick to avoid penalties?

3 comments

3 Comments

blair_torres705d ago

Oh man, that $1400 ouch is rough. Ngl I had a similar thing happen but with my state taxes instead of federal. I was so proud of myself for nailing the federal payments then I forgot state even existed. Got this nasty letter from the state comptroller three months later. Turns out I was short like $900. Now I just throw an extra $100 into state each quarter and call it good. The safe harbor rule is a lifesaver honestly. I used to think I could eyeball it but after that letter I'm team overpay. That $200 buffer is smart I might try that next year.

max_schmidt775d ago

$1400 off, wow that's a gut punch I wouldn't forget either.

jackson.max5d ago

@max_schmidt77 yeah that's the one. Honestly I used to think the safe harbor thing was overkill but after that $1400 mistake I'm a believer now. A $200 buffer sounds real nice, did you do anything special to land on that number or just guess?