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polkfamily
New Member

How come our estimated taxes for next year are so high? What happens if we don't pay the full amount that is suggested?

 
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Ashby
New Member

How come our estimated taxes for next year are so high? What happens if we don't pay the full amount that is suggested?

I am not sure why they are unusually high, but nothing really "happens" if you don't pay the full amount. The potential problem is the underpayment penalty if you haven't paid 100% of the prior year's tax or 90% of the current year.

If you think they are inflated figures, I would recommend using your best judgment. If you are off slightly on your calculation, there is no penalty if you owe less than $1,000 and the penalty is only 0.5% of tax owed per month late.

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Ashby
New Member

How come our estimated taxes for next year are so high? What happens if we don't pay the full amount that is suggested?

I am not sure why they are unusually high, but nothing really "happens" if you don't pay the full amount. The potential problem is the underpayment penalty if you haven't paid 100% of the prior year's tax or 90% of the current year.

If you think they are inflated figures, I would recommend using your best judgment. If you are off slightly on your calculation, there is no penalty if you owe less than $1,000 and the penalty is only 0.5% of tax owed per month late.

View solution in original post

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