Estimated taxes safe harbor federal and North Carolina

[hntrust]

I know that if I pay 100% of the tax owed in 2023 as estimated payments for 2024 that I am safe from penalties and interest when I file for 2023. Are the rules the same for estimated state taxes for North Carolina?

[LenaH · Accepted solution]

When you file for 2024, you will owe a underpayment penalty if the total of your North Carolina income tax withheld and timely estimated tax payments do not equal at least the smaller of:

• 90% of your 2024 tax, or
• 100% of your 2023 tax

D-422 Instructions

[wquarlesjr]

So there is no income level for north carolina where estimated payments have to be 110% of the previous year's total tax, like the Federal tax code requires?

[fanfare]

"100% of the tax owed in 2023 as estimated payments for 2024"

The statement of OP is not correct

That's not sufficient to avoid any IRS penalty.

If your total 2024 withholding alone is 100 % of that amount ( 110% if your 2023 AGI is over $150,000),

You don't need to make estimated tax payments.

In other words, the rule applies to withholding, not estimated tax.

@wquarlesjr