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What is Safe Harbor?

This number represents the amount a taxpayer could pay, via withholding and estimated taxes, to avoid an underpayment penalty.

Safe Harbor tax laws help taxpayers avoid underpayment penalties if they owe less than $1,000, or by paying a certain amount based on the current or prior year's taxes due. 

This value is calculated either 90% of current current year taxes or 100% (or 110% if AGI is over a certain amount) of prior year taxes.

Because in any given tax year we're reviewing the prior year's return (2025 tax returns due in April of 2026), the Tax Report will always display the 100%/110% prior year calculation in the Key Figures. Clicking on the questions mark (?) icon located to the right of Safe Harbor will provide additional details on the value:




On the other hand, the Scenario Analysis will always display the 90% of current year calculation within the Federal Withholding Calculator tab. This is because scenarios are not linearly connected and therefore each individual scenario is not aware other scenarios or tax returns exists outside of itself to draw information from. It assumes each tax year modeled represents the current year and has no previous year to reference.