“You can avoid an underpayment penalty if you've paid… at least 90% of this year's tax liability or 100% of last year's liability… increases to 110% if prior year income > $150,000”

Amanda Kish · Motley Fool Hidden Gems Investing · Act Now to Lower Taxes for 2026

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What was described

Use IRS safe-harbor rule: ensure total withholding + estimated payments reach at least 90 % of current-year liability (or 100 % of prior year) to avoid underpayment penalty

90 % of current year liability; 100 % of prior year; 110 % if prior year AGI > $150,000

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