My client's income is unpredictable. How can I calculate Safe Harbor?
- Safe Harbor tax laws protect taxpayers from paying penalties if they pay a certain amount.
- If the client's income is unpredictable, you can either pay what you think their tax is going to be or go off of the previous years income.
- The Safe Harbor number we provide can be located in the Key Figures section of the tax report. The question mark next to the number will provide a summary on how our system came up with that number.
In Scenario Analysis, the Safe Harbor line represents the option of 90% of the Scenario's tax, per the IRS.