Originally Posted by
Fly76
technically owing is better then getting thousands back. Giving a free loan to the IRS 🤮. Slowly trying to get it as close to 0 as possible.
you dont want to underpay and owe.
If you fall under safeharbor rules, then you won't owe underpayment penalties and interest in addition to the tax owed.
You wont get charged underpayment if you don't owe more than $1000.
If you owe more than $1000, then if you paid at least 90% of the tax owed this year or you paid 100% (110% if your AGI is over $150k) of what you owed last year you wont face underpayment penalties
https://www.hrblock.com/tax-center/i...t-tax-penalty/