If an individual taxpayer's quarterly estimated tax payments equal or exceed 70 percent of the tax due for the current year, the taxpayer will not be subject to the penalty for underpayment of estimated tax.

Question

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The safe harbor rule for avoiding the underpayment penalty generally requires that the taxpayer's payments equal at least 90% of the tax owed for the current year or 100% (110% for higher income taxpayers) of the tax shown on the return for the prior year, whichever is smaller.

If an Individual Taxpayer's Quarterly Estimated Tax Payments Equal or Exceed