Penalty due to new law waived. For estimated tax payments due before August 22, 1998, you will not have to pay a penalty for failure to pay estimated income tax to the extent your underpayment was created or increased by a provision of the Internal Revenue Service Restructuring and Reform Act of 1998.

Excess social security or railroad retirement tax withholding. You will have excess social security or tier 1 railroad retirement tax withholding for 1998 only if your wages from two or more employers were more than $68,400. See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 38.

Who must pay estimated tax. You will not be liable for the penalty for failure to pay estimated income tax if the total tax shown on your return minus the amount you paid through withholding (including excess social security and railroad retirement tax withholding) is less than $1,000.

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