It depends. Per the IRS, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.
If you have an underpayment, all or part of the penalty for that underpayment will be waived if the IRS determines that:
-
In 2019 or 2020, you retired after reaching age 62 or became disabled, and your underpayment was due to reasonable cause (and not willful neglect); or
-
The underpayment was due to a casualty, disaster, or other unusual circumstance, and it would be inequitable to impose the penalty.
Please see Instructions for 2210 for more information if one of those exceptions may apply to your situation.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
