Our family taxes have never been complicated, but they are about to become moreso: my wife got a raise, I got a new job, and we bought a house – the payments for which mean it will be beneficial to itemize for the first time this year due to the mortgage interest deduction. I was stressing about how to calculate our withholding, but then I read about the safe harbor rule. But I want to make sure I understand before I get myself into trouble:
Can I just set our exact income tax withholding amounts for 2026 such that we hit 110% of our liability for 2025 without risk of penalty? Am I reading this right?
Looking for reassurance re. Safe Harbor rule
byu/supercuts350 intax
Posted by supercuts350
2 Comments
It has to be 110% of your *total tax*, assuming your adjusted gross income is over $150,000, but yes you can do that.
I know you didn’t mention anything regarding what state you’re in, but just double check your state’s safe harbor rules (if state taxes are applicable). They don’t always conform to IRS safe habor rules.
As others have posted, Line 24 on the 2025 return will be your source for total tax 😀