It depends. It appears you may have paid at least 100% of your 2024 tax based on your information but I can't be sure. Double check your estimated tax total against your total tax on your 2024 tax return (total tax liability line). If not, and the income was higher in 2025, and you didn't compensate by increasing your estimated tax payments a penalty could occur.
You might try to request a waiver of the penalty by using the information below.
Alabama (AL) will charge a penalty for under payment in the following circumstances.
- In general, you may owe the penalty for 2025 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of: 1. 90% of your 2025 tax, or 2. 100% of your 2024 tax. (higher income taxpayers would be more)
Key Exceptions & Waiver Factors
- Reasonable Cause: The Department of Revenue may waive penalties if the failure to pay was not due to negligence or intentional disregard.
- Specific Circumstances: Valid reasons often include []natural disasters, fires, or serious illness/death of the taxpayer or immediate family.
- Administrative/Technical Issues: System failures that prevent timely []electronic payment can be considered.
- Unforeseen Events: Inability to access records or other unexpected, unavoidable situations
How to Request a Penalty Waiver
- Log into the My Alabama Taxes (MAT) account.
- Select the specific tax account.
- Choose the "Ask a question" link in the "I want to" section.
- Provide a detailed explanation for the late payment
You can contact us using the information below.
@drbailey25
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