Estimated Tax Penalty Avoidance Calculator

Estimated Tax Penalty Avoidance Calculator (USA)

This tool helps you check if you may avoid an estimated tax underpayment penalty based on the two main Safe Harbor rules:

Pay at least 90% of your **current** year's tax liability, OR
Pay at least 100% of your **prior** year's tax liability.

If your **prior** year's Adjusted Gross Income (AGI) was over $150,000 ($75,000 if married filing separately), the prior year safe harbor increases to 110% of your prior year's tax.

Note: Meeting a Safe Harbor generally avoids penalties *if* estimated tax payments were made timely throughout the year. This tool does not calculate the penalty amount itself or account for exceptions like the annualized income installment method.

Prior Year Tax Information

Prior Year's Total Tax Liability ($): $

Prior Year's Adjusted Gross Income (AGI) ($): $

* Find these amounts on your prior year's federal tax return (Form 1040).

Current Year Tax Information

Current Year's Total Tax Liability (Estimate or Actual) ($): $

Total Estimated Tax Payments Made for Current Year ($): $

* Include any federal income tax withholding you had (e.g., from a W-2 job).

Estimated Tax Penalty Avoidance Check Results

Check based on the two main Safe Harbor rules and your inputs. Meeting either test generally avoids penalties.

Note: Timely payment throughout the year is required. This tool does not calculate penalty amounts.

Your Inputs:

Prior Year Tax Liability: $0.00

Prior Year AGI: $0.00

Current Year Tax Liability (Est/Actual): $0.00

Total Estimated Payments Made: $0.00

Safe Harbor Tests:

Test 1: 90% of Current Year Tax: $0.00

Met Test 1?

Test 2: Prior Year Tax Safe Harbor (100% of Prior Year Tax): $0.00

Met Test 2?