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MLZ
New Member

Our AGI for 2018 will increase 20% in 2018 (starting Social Security).Will I be safe from penalties if I just use my current tax year taxes to for 1040 ES amount?

 
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CherylW
Level 3

Our AGI for 2018 will increase 20% in 2018 (starting Social Security).Will I be safe from penalties if I just use my current tax year taxes to for 1040 ES amount?

The rule is if you think you'll owe (line 78, Form 1040, or line 50, Form 1040A) more than $1,000

OR

you either expect your withholding and refundable credits to be less than the smaller of

90% of the tax shown on your 2017 tax return, or

100% of the tax shown on your 2016 tax return.

If you just use your current year (2017) taxes for your 1040ES, then you'll be paying 100% of the 2017 taxes, which will make you safe from penalties.

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2 Replies
CherylW
Level 3

Our AGI for 2018 will increase 20% in 2018 (starting Social Security).Will I be safe from penalties if I just use my current tax year taxes to for 1040 ES amount?

The rule is if you think you'll owe (line 78, Form 1040, or line 50, Form 1040A) more than $1,000

OR

you either expect your withholding and refundable credits to be less than the smaller of

90% of the tax shown on your 2017 tax return, or

100% of the tax shown on your 2016 tax return.

If you just use your current year (2017) taxes for your 1040ES, then you'll be paying 100% of the 2017 taxes, which will make you safe from penalties.

MLZ
New Member

Our AGI for 2018 will increase 20% in 2018 (starting Social Security).Will I be safe from penalties if I just use my current tax year taxes to for 1040 ES amount?

Thanks - I like I can use 2017 to be safe from penalties as in 2019 I start IRA MRDs and my AGI will again increase by over 50%
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