IRS Safe Harbor Rule for Estimated Quarterly Tax Payments

Can any of our Accountant members explain how the Safe Harbor Rule can be used by those of us receiving our signing bonus early this tax year. Is this rule honored by the state tax, (Pa., Oh., WV.), bureaus also?

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Permalink Reply by Tom R on March 20, 2013 at 3:50am

I'm not an accountant, but I'm fairly certain the Safe Harbor Rule you are asking about only applies to the penalties for underpayment of estimated tax. It does not effect how much tax you'll ultimately owe. I searched on the IRS site for Safe Harbor and Individuals and this is what came up

http://www.irs.gov/Individuals/Understanding-Your-CP30-Notice

You might also look up the instructions for Form 2210 and 1040ES.

PA has similar rules but of course they are a bit different from the federal in the details. No idea about the other states, but would assume they have something similar.

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