We made a couple small Roth conversions in 2018 that will result in us owing $200.00 to the IRS total on our tax return once we take into account a retirement savings credit for my wife, an aotc for myself and and earned income credit for our last son at home. We will also owe the State of Michigan just under $500.00, in part because of these conversions, once we take our state property tax credit into account My question is regarding safe harbor based on the previous years tax liability if you have had 100% of your previous years tax liability covered by withholding or extimated payments. What is considered tax liability? Is it before any credits or does it include any credits? I have seen it described on some forums as the amount from line 63 on the old 1040, or what will go on line 15 of the new form. We had no tax due to the federal or state in 2017 because of credits, but want to make sure I understand how that differs from tax liability?
