Originally Posted by kaneohe
It might be simpler to increase withholding so that you end up in the safe harbor of withholding 90% of the current years taxes (or 100% of last yrs taxes.....or 110% if AGI > 150K). That way you might also make an extra penny or so in interest by paying throughout the yr instead of in Q1. You can request employer withhold an extra X$ per pay period.
That brings up an interesting point.
For those that go into the first year of FIRE - income streams change dramatically.
My income is....pretty darn good - but the resulting withholdings and our taxes for 2013 were high.
So for that first year of FIRE, if I used a "Safe Harbor" approach, I have a feeling that I'd be giving Uncle Sam a free loan and over paying in taxes.
After we have settled into a spending pattern *after* FIRE, I could see using the Safe Harbor approach.