Hello Alli_H
Im sorry about the fine that you received for quarterly estimated tax payments.
How quarterly estimated tax payments work is that these are tax payments that you make quarterly to the IRS based off your projected income for the current tax year you are making those quarterly estimated payments for.
The fines and penalties for underpayment of estimated tax are usually because of the following: 1) did not pay enough estimated tax on your income or 2) you paid the estimated tax after the due date for a particular quarter.
So lets say, for the 2023 tax year, your taxable income was X, and after factoring in any estimated tax payments made during 2023 and/or credits, you ended up owing federal taxes in the amount of Y. For the 2024 tax year, you will have 4 vouchers, each of which will be for a specific quarter during the year at a disclosed amount of A for each voucher (these vouchers will be generated for you, and the amounts on these vouchers are based off your 2023 tax liability). These amount on each voucher are estimates of what you have to pay each quarter to avoid underpayment penalty for the current tax year.
