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The IRS system is a pay as you go system. When you make money they want the tax dollars owed each quarter, however there are exceptions to the penalty if you qualify.
Generally, you can avoid the penalty if your total timely estimated payments and withholdings are greater than or equal to the lesser of:
You can also avoid the penalty if the amount you owe is less than $1,000 as long as any estimated tax payments you made are timely. If you did not pay estimated payments and did not have income tax withholding, then you can expect a penalty if one of the two exceptions are not met.
Note: High-income taxpayers. If your adjusted gross income (line 11 of your 2023 Form 1040) is greater than $150,000 (or $75,000 if you're married and file a separate return from your spouse), you can avoid a penalty by paying at least 110% of your total tax from the prior year.
To review your penalty and possibly try the annualization method (usually benefits those whose earnings are greater in the last quarter):
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