You will have a penalty if you don't fulfill at least one of these IRS requirements.
- You paid 90% of the tax that you owe for the current year.
- If the current taxes paid are equal to 100%, (110% for higher incomes) of your taxes owed the previous year.
- The IRS also says you can probably avoid the penalty if the amount you owe is less than $1,000.
To avoid this, you should change your W-4 to take extra taxes from your paycheck, or pay estimated taxes.
For more information, see, Avoid a tax penalty
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