Announcement

Collapse
No announcement yet.

safe harbor rules

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • safe harbor rules

    Do safe harbor rules apply to tax filers who have both W2 and 1099 income? I had only W2 income last year. This year I have W2 income and additional 1099 income from moonlighting. My W2 income is higher than last year, so more taxes are being withheld, but probably not enough to cover my 1099 income. Will I be avoid penalties as long as I have 110% of last year's tax obligation withheld? I have mostly heard the safe harbor rules discussed for self-employed or independent contractors, and am not sure how it applies to W2 earners. TIA.

  • #2
    Safe harbor is based on your total taxes. Not just W2. So it would include any investment income, schedule C (1099) income, schedule E (rental) income, etc. So line 24 of your 1040.

    Comment


    • #3
      Safe harbor rules apply to all tax filers, but it’s typically the high income earners who get caught. The way that many doctors seem to come up short is when their income tax withholding does not go up by the amount needed for the 110% threshold. States typically comply, but some have wonky rules, so be sure to check your state.
      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

      Comment

      Working...
      X