Estimated Tax Payment Changes of 1997 Tax Act

Estimated Tax Payment Changes of 1997 Tax Act

Relaxation in estimated tax payments

Relaxation in estimated tax payments

For tax years beginning in 1998, the new law raises from $500 to $1,000 the amount of net tax liability required before the imposition of a penalty for underpaying estimated taxes

The new $1,000 figure means that if your estimated tax payments and withholding are within $1,000 of your actual tax liability, you will not face penalties for underpayment of tax