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samoore2209
New Member

Is there a way not to have to pay the Indiana Underpayment Penalty if retired and income was from 401K?

 
1 Reply
DianeW
Expert Alumni

Is there a way not to have to pay the Indiana Underpayment Penalty if retired and income was from 401K?

No. There is not a different rule based on the type of income you received.

Generally, if you owe $1,000 or more in state and county tax for the year that’s not covered by withholding taxes, you need to be making estimated tax payments.

You might owe this penalty if: 

  1. • The total of your credits, including timely made estimated tax payments, is less than 90 percent of this year’s tax due or 100 percent* of last year’s tax due, ** or 
  2. • You underpaid the minimum amount due for one or more of the installment periods.

For more information you can review the information at this link: IN IT-40 Instructions (click on this document and start on page 9).

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