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@Stevehofwa wrote:

So it’s clear as mud.  How accurate does it have to be?  It seems to me that in general, if you are withholding, and have some unusual income, you just have to pay 110% of last years or 90% of this years during the year by withholding or by estimated in the year and you are good.  After all, how do I know I won’t have other losses to offset?   That’s why that rule is there, to avoid nitpicking.  Now if you are a business, I can imagine it’s different, you may be legally obligated since you don’t have withholding.


Even though 110% is a safe harbor, the payments must still be spread out evenly over the year, either by quarterly payments or withholding or a combination.  If you only made one estimated payment by the 4th quarter deadline (January 15), you could be subject to an underpayment penalty even if that payment brought you up to 110%.