I deducted taxes from salary (W2) properly. But, I did not pay taxes incrementally with investments (1099div). Do I owe an underpayment penalty related to the 1099?

Can big gains (revealed in 1099-div) result in an underpayment penalty? (Or are underpayment penalties only via the W2?)

posted

Yes, the underpayment penalty applies to all income, so any investments or other income would require estimated taxes to avoid the penalty.

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Do you have an Intuit account?