The Safe Harbor Pilot Boat
TL;DR — The System
- Look up last year’s total federal tax
- Set that as this year’s Safe Harbor target
- Check your year-to-date federal withholding
- Estimate your year-end total withholding
- Compare:
- Over target → reduce withholding
- Under target → increase withholding
- Calculate adjustment:
- $\dfrac{(\text{Target in dollars}) - (\text{Projected Total …
