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Level 15
Level 15

Get your taxes done using TurboTax

The estimated tax penalty is based only on the current year. Past years or "a lifetime of paying taxes" have nothing to do with it.

 

Income tax is "pay as you go." You have to make payments periodically during the year, through either withholding or estimated tax payments. Paying a large amount at the end of the year does not satisfy the pay-as-you-go requirement.