topic Do I need to set up vouchers for federal estimated taxes as suggested? What is penalty next year if we fail to pay estimated taxes? in Get your taxes done using TurboTax

Do I need to set up vouchers for federal estimated taxes as suggested? What is penalty next year if we fail to pay estimated taxes?

rolokeno — Thu, 06 Jun 2019 08:50:59 GMT

There are 3 ways you can avoid the penalty: 1. Pay 100% o...

Ashby — Thu, 06 Jun 2019 08:51:01 GMT

There are 3 ways you can avoid the penalty:

1. Pay 100% of 2018's tax liability

2. Pay 90% of 2019's tax liability.

3. Owe less than $1,000 total

If you owe the penalty, it is 0.5% of tax owed for each month late. This penalty is not that severe, dollar-wise, unless you grossly underpay.

How to avoid estimated tax penalties? In general, you...

MickeyMath — Thu, 06 Jun 2019 08:51:04 GMT

How to avoid estimated tax penalties?

In general, you must pay estimated tax when:

you expect to owe at least $1,000 in tax after your withholding and refundable credits, and.
you expect your withholding and refundable credits to be less than the smaller of (1) 90% of the tax to be shown your tax return, or (2) 100% of the tax shown on the previous year's tax return.

How much is the failure to pay penalty? The failure-to-...

MickeyMath — Thu, 06 Jun 2019 08:51:06 GMT

How much is the failure to pay penalty?

The failure-to-file penalty is .05% of your balance due for every month (or part of a month) in which your taxes go unpaid. The amount you owe for this penalty will be reduced by the amount you owe for the failure-to-pay penalty. The maximum amount of this penalty is 25% of your unpaid taxes.

@MickeyMath That's failure to file penalty. Failure to pa...

Ashby — Thu, 06 Jun 2019 08:51:08 GMT

@MickeyMath That's failure to file penalty. Failure to pay is 0.5% not 5%

Thank you TuboTax Ashby.

MickeyMath — Thu, 06 Jun 2019 08:51:10 GMT

Thank you TuboTax Ashby.