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Do we still need to pay 110% of 2017 taxes to avoid underpayment penalty for 2018? It seems we need to make significantly larger estimated tax payments in 2018!
If the new tax law is supposed to save us money, then it seems to totally wipe out the purpose if I just have to make massive estimated tax payments to offset what is no longer being taken out of my paycheck?
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Do we still need to pay 110% of 2017 taxes to avoid underpayment penalty for 2018? It seems we need to make significantly larger estimated tax payments in 2018!
Yes, if you are a "higher income taxpayer." If your adjusted gross income (AGI) for 2017 was more than $150,000 ($75,000 if your filing status for 2018 is married filing separately), you would need to pay in at least 110% of your 2017 tax under the General Rule to avoid an underpayment penalty. This rule doesn’t apply to farmers or fishermen.
It's actually not a change from last year, because the 2017 1040-ES instructions had the same information for higher income taxpayers. Other taxpayers only need to pay in 100% of last year's tax to avoid a penalty.
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Do we still need to pay 110% of 2017 taxes to avoid underpayment penalty for 2018? It seems we need to make significantly larger estimated tax payments in 2018!
Yes, if you are a "higher income taxpayer." If your adjusted gross income (AGI) for 2017 was more than $150,000 ($75,000 if your filing status for 2018 is married filing separately), you would need to pay in at least 110% of your 2017 tax under the General Rule to avoid an underpayment penalty. This rule doesn’t apply to farmers or fishermen.
It's actually not a change from last year, because the 2017 1040-ES instructions had the same information for higher income taxpayers. Other taxpayers only need to pay in 100% of last year's tax to avoid a penalty.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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Do we still need to pay 110% of 2017 taxes to avoid underpayment penalty for 2018? It seems we need to make significantly larger estimated tax payments in 2018!
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Do we still need to pay 110% of 2017 taxes to avoid underpayment penalty for 2018? It seems we need to make significantly larger estimated tax payments in 2018!
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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Do we still need to pay 110% of 2017 taxes to avoid underpayment penalty for 2018? It seems we need to make significantly larger estimated tax payments in 2018!
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