Why do I have a penalty?

jfsgreen — Wed, 25 Feb 2026 20:53:09 GMT

Re: Why do I have a penalty?

DoninGA — Wed, 25 Feb 2026 20:54:32 GMT

JohnB5677 — Wed, 25 Feb 2026 21:08:15 GMT

You will have a penalty if you don't fulfill at least one of these IRS requirements.

You paid 90% of the tax that you owe for the current year. 
If the current taxes paid are equal to 100%, (110% for higher incomes) of your taxes owed the previous year. 
The IRS also says you can probably avoid the penalty if the amount you owe is less than $1,000.

To avoid this, you should change your W-4 to take extra taxes from your paycheck, or pay estimated taxes.

For more information, see, Avoid a tax penalty