Chris11
New Member

If I make a lump estimated tax payment in the 4th quarter, enough to make me hit 110% of my 2017 taxes, can I avoid an underpayment penalty?

I sold a lot of stock to buy a home, and from what I understand you are supposed to make timely payments (i.e. in the quarter you had the gains) to avoid a penalty. However, I am wondering if the safe harbor of paying 110% of my 2017 taxes will let me defer paying until years end so I can set that money aside to earn some interest in the meantime.