topic Why am i paying a penaltyinterest if i am paying my taxes in full on time in Get your taxes done using TurboTax

Why am i paying a penaltyinterest if i am paying my taxes in full on time

taxlee4 — Tue, 04 Jun 2019 20:21:10 GMT

The IRS expects you to pay as you earn during the year. I...

Texas Roger — Tue, 04 Jun 2019 20:21:12 GMT

The IRS expects you to pay as you earn during the year. If you don't pay as you earn, you may be subject to an underwithholding penalty and interest. This can occur if you underwithhold from your pay or if there is no withholding form self employment income and you don't pay quarterly estimated taxes.

Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.Oct 10, 2016

Re: Why am i paying a penaltyinterest if i am paying my taxes in full on time

sistersarahmaryono1 — Mon, 01 Apr 2024 17:35:31 GMT

why am i paying a penalty

Re: Why am i paying a penaltyinterest if i am paying my taxes in full on time

AmyC — Mon, 01 Apr 2024 21:50:31 GMT

If you owe more than $1,000, you did not make sufficient payments throughout the year. If you owe more than $5,000, you substantially underpaid during the year. The IRS expects you to pay taxes as the income is earned. April 15th is the deadline to finish those tweaks for a refund or balance due.

@sistersarahmaryono1