Investors & landlords

@cgn 

IF you have withholding throughout the year 2019 that amounts to 110% of your 2018 tax liability*, THEN you will not incur underpayment penalties.

 

* Your prior year tax liability is not the amount you might have sent in with your income tax return.  Here's the IRS's instructions:

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Figuring your 2018 tax.

Use the following instructions to figure your 2018 tax.

The tax shown on your 2018 Form 1040 is the amount on Form 1040, line 15 reduced by:

1.Unreported social security and Medicare tax or RRTA tax from Schedule 4 (Form 1040), line 58;

2.Any tax included on Schedule 4 (Form 1040), line 59, on excess contributions to an IRA, Archer MSA, Coverdell education savings account, health savings account, ABLE account, or on excess accumulations in qualified retirement plans;

3.Any shared responsibility payment on Schedule 4 (Form 1040), line 61;

4.Amounts on Schedule 4 (Form 1040), line 62, as listed under Exception 2, earlier; and

5.Any refundable credit amounts on Form 1040, line 17a, b, or c, and Schedule 5 (Form 1040), line 70 and 73, and credit from Form 8885 included on line 74.

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