It depends. This article will provide steps to entering Form 2210. This is a way to report the actual 2018 tax liability and to report any change in income from 2018 to 2019. More importantly, it provides an opportunity to report income as received per quarter if it was earned unevenly through the year.
However, when a tax balance owed is more than $1,000, then there could still be a penalty assessed.
Secondly, the estimated payments generated would have assumed the other withholdings were constant. If the actual withholdings were not at least as much as 2018, then a penalty could be generated.
Lastly, if the estimated payments were not received by the estimated due dates, there could have been some penalties and interest assessed.
The rule to prevent penalty assessment for taxpayers whose filing status is married filing jointly with AGI of $150,000 or less is:
Taxes must be paid through the current year to equal the lower of either
- 100% of the prior year OR
- 90% of the current year
The rule to prevent penalty assessment for taxpayers whose filing status is married filing jointly with AGI of $150,000 or more is:
Taxes must be paid through the current year to equal the lower of either
- 110% of the prior year OR
- 100% of the current year
