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I received a letter from wisconsin revenue saying i owe underpayment interest I am a tree farmer and my employer does not take out taxes

i thought i was exempt from prepaying taxes?
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1 Reply
JohnW222
Expert Alumni

I received a letter from wisconsin revenue saying i owe underpayment interest I am a tree farmer and my employer does not take out taxes

Depending on how your work is classified, you may be correct, and you should contact the Wisconsin Department of Revenue using the phone number in the letter you received.

According to the 2019 Form 1-ES Instructions – Estimated Income Tax for Individuals, Estates, and Trusts,

"If you have income from which tax is not withheld (for example, interest, dividends, unemployment compensation, self-employment income, taxable pensions, etc.), you must pay estimated tax to prepay any tax which will be computed on your income tax return for the year."

However, there is an exception for farmers and fishermen and fisherwomen: 

"If at least two-thirds of your gross income (joint gross income, if applicable) for 2018 or 2019 is from farming or fishing, you may:

• Pay your 2019 estimated tax in full by January 15, 2020; or

• File your 2019 income tax return on or before March 1, 2020, and pay the total tax due. In this case, you need not make estimated tax payments for 2019."

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