current IRS rules for avoiding underpayment penalty in 2025. state laws vary
There will be no federal penalties for not prepaying enough taxes during the year if withholding and
a) timely estimated tax payments equal or exceed 90% of your 2025 tax or
b) timely estimated tax payments equal or exceed 100% of your 2024 tax (110% if your 2024 adjusted gross income was more than $150K) or
c) the balance due after subtracting taxes withheld from 90% of your 2025 tax is less than $1,000 or
d) your total taxes are less than $1,000
