Underpayment penalty question

Technical topics regarding tax preparation.
#1
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CA taxpayers with $1,000,000 or more of CA AGI do not get to use the 100%/110% of prior year's taxes safe harbor to avoid underpayment penalties. They must pay in the entire current year projected tax in quarterly payments (or withholding etc.).

I cannot find such a stipulation in the federal underpayment instructions. Just want to make sure, no matter how much a taxpayer's federal AGI, the taxpayer can use the 100%/110% of prior year's taxes to calculate the underpayment penalty.

Right?
 

#2
AlexCPA  
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Kendrick wrote:Just want to make sure, no matter how much a taxpayer's federal AGI, the taxpayer can use the 100%/110% of prior year's taxes to calculate the underpayment penalty.

Right?


That is correct -- the $1,000,000 stipulation is applicable only for CA income tax purposes and not for federal (with respect to individual taxpayers).
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#3
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Thank you.
 


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