Safe harbor for higher income taxpayers
My last update on Sept 8 2016 (Saving taxes through payroll) briefly touched on the timing differences between estimated quarterly taxes and withholding through payroll. This week I will extend and elaborate upon the concept of estimated taxes, in particular how higher income taxpayers can ballpark their 2016 taxes and avoid underpayment penalties and interest. ----- IRS Publication 505 provides guidance for taxpayers regarding estimated taxes and withholding. The following e