Generally, an underpayment penalty can be avoided if you use the safe harbor rule for payments described below. The IRS will not charge you an underpayment penalty if:
You pay at least 90% of the of the tax you owe for the current year, or 100% of the tax you owed for the previous tax yearrule is altered slightly for high-income taxpayers. If the Adjusted Gross Income (AGI) on your previous year’s return is over $150,000 (over $75,000 if you are married filing separately), you must pay,
can you give me an example of what this means?
