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Owe Over $1,000? The IRS Wants It Quarterly
If you'll owe more than $1,000 at tax time, the IRS doesn't want it all in April — they want it quarterly, in four payments a year, and missing them brings an underpayment penalty. The protection is called safe harbor: pay at least 100% of last year's total tax (110% for high earners) and you're safe.
Watch on YouTube · From the Vest & Nest channel
Transcript
Amy: What are estimated taxes? Do All of it paid in April?
Michael: If you'll owe more than one thousand dollars at tax time, the IRS doesn't want it all in April. They want it quarterly. Four payments a year.
Amy: What if I miss them?
Michael: Miss them, and there's an underpayment penalty — a fine for paying late.
Amy: Is there any protection?
Michael: Yes! There is, it is called safe harbor — A payment rule that protects you. The simplest one: pay at least one hundred percent of last year's total tax — one hundred ten if you're a high earner — and you're safe.
Michael: TaxMyVest.com finds your target and splits it into four payments with the real due dates. Free. No signup.
Amy: Thanks for watching!
Michael: Like! Subscribe! and Share!
Find your safe-harbor target
The estimated-tax calculator finds your safe-harbor target, subtracts what you've already paid, and splits the rest into four payments with the real IRS due dates.
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