This depends on what type of a taxpayer.
Lets assume that we are talking about individuals. if the amount was paid in a timely Fashion, and at the 1,000 mark, then yes.
but a special rule comes into plan when the income is higher than $150,000. Here are the rules:
You will not owe the penalty for the underpayment of estimated taxes if the amount of taxes you pay (through withholding and/or timely paid estimated tax payments) is the lesser of:
- 90% of the actual tax shown on your 2013 tax return, or
- 110% of the tax on your 2012 tax return based on a safe harbor exception (100% if the adjusted gross income on your 2012 return was $150,000 or less, or $75,000 if married filing separately), or
- 90% of your actual tax for 2013 based on the annualized income installment method (See Tax Tip 4).
let us know if you need more help.
-------------------------------------------
Abby Alhante
KURCIAS & ALHANTE, CPAs LLC
Woodbury NY
-------------------------------------------
Original Message:
Sent: 01-21-2014 12:10
From: Richard Margelefsky
Subject: safe harbor on estimated taxes
the question is, if paying this year estimated taxes and covering prior years tax. would that prevent an under payment penalty on
filing the return when you still had to pay over $1000 with the return for current year.
-------------------------------------------
Richard Margelefsky
RICHARD MARGELEFSKY, CPA
New City NY
-------------------------------------------