2020 taxes

Forum|Forum|6 years ago
June 14, 2020
1 reply
13 views

Hi:Forms PV9502D)

I just filed my 2019 federal and Maryland taxes. On filing, I realized that the federal is requesting 2020 forms-ES payment vouchers for $321x4 and Maryland state is asking for forms PV (502D) for $295x4 payments.

My questions to you are:

1. Why am I being asked for it?

2. Do I need to pay them?

3. What if I don't pay? Will there be a penalty?

Thank you,

Neeraj

Anonymous

tt has concluded from your entries that you need to pay those estimates in order to avoid underpayment penalties when filing your 2020 return. evidently based on your 2019 withholdings, not enough will be withheld for 2020 to meet the required minimum payments. you have the option not to pay them and risk penalties or increase your withholdings to avoid having to pay estimates.

example for Federal to avoid penalties any of the following conditions must be met:

1) 2020 federal taxes less withholding is less than $1000.

2) 2020 withholding and timely paid estimates are 100% of 2019 tax (110% if 2019 adjusted gross income is over $150,000) when 90% of 2020 taxes are more than the 100/110% of 2019 taxes

3) 2020 withholding and timely estimated tax payments are greater than the smaller of 90% of 2020 taxes or 110%/110% of 2019 taxes.

here's a link to IRS 2210.

https://www.irs.gov/pub/irs-pdf/f2210.pdf

states are different.