Estimated Tax Payments 2024 Safe Harbor Tax. Even if you owe more than $1,000 when you file, you won’t pay the penalty if your total income tax withholding and timely estimated tax payments equal at least 90% of the tax shown. The safe harbor rules say you can avoid irs penalties by paying at least 90% of your 2024 tax liability or 100% of 2023 taxes, whichever is smaller.
The safe harbor rules say you can avoid irs penalties by paying at least 90% of your 2024 tax liability or 100% of 2023 taxes, whichever is smaller. The estimated tax safe harbor rule is based on 110 percent of the tax shown on the client’s tax return.