BarbL
Employee Tax Expert

Get your taxes done using TurboTax

Most taxpayers can avoid the penalty by ensuring they have paid taxes equal to 100% of the prior year tax liability.  This can be via withholding or estimates.  If your AGI is over $150,000, you must pay 110% of the prior year tax liability in order to avoid a penalty.

 

If you have W-2 income, just be sure you withhold an amount equal to or more than your 2018 tax liability (or 110% of it if AGI is over $150,000). 

 

 

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