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?

[CherylW · Accepted solution]

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]

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%