There has been no change in the safe harbors for Estimated Payment of Individual Income Tax for tax year 2011.

The safe harbor rules are as follows:

1. You did not have a tax liability in 2010 – If you did not owe taxes a year ago, you will not be penalized for underpayment this year. However, if you owe this year you will incur an underpayment penalty if you underpay your taxes in the following year (i.e. you underpaid 2 years in a row).

2. You paid 90% or more of your actual current year liability – If you owed $50,000 for 2010 and you made payments throughout the year that amounted to at least $45,000, then you’re penalty safe.

3. You paid in, either through withholding taxes, estimated payments or both, more than 100% of your 2010 tax liability – If you owed $5,000 in income taxes in 2009 and you owe $50,000 for 2010, as long as you paid more than $5,000 in 2010 (and made all your required estimated tax payments) then you will be not be penalized.

You will be charged a penalty if any statement made on the voucher is not true and accurate to the best of your knowledge.