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Can An employed physician be penalized for failure to pay estimated quarterly taxes. My AGI went from 345 to 371(22 to 23 returns) I paid 21K in 22 with no penalty

I paid 20k this year. IRS states I owe them 500 in penalty. I have never paid quarterly estimated taxes in 40 years.
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Can An employed physician be penalized for failure to pay estimated quarterly taxes. My AGI went from 345 to 371(22 to 23 returns) I paid 21K in 22 with no penalty

The IRS will not charge you an underpayment penalty if:
  1. You pay at least 90% of the tax you owe for the current year, or 100% of the tax you owed for the previous tax year, or.
  2. You owe less than $1,000 in tax after subtracting withholdings and credits.

Can An employed physician be penalized for failure to pay estimated quarterly taxes. My AGI went from 345 to 371(22 to 23 returns) I paid 21K in 22 with no penalty

since it seems your AGI for 2022 was over $150K you have to pay in on estimates and withholding either 90% of 2023 tax or $110% (not 100%) of your 2022 tax.

 

 

the same rules apply for 2024.

 

 

pay in through withholding and timely estimates 90% of 2024 tax or 110% of 2023 tax. 

Can An employed physician be penalized for failure to pay estimated quarterly taxes. My AGI went from 345 to 371(22 to 23 returns) I paid 21K in 22 with no penalty

Are you a W-2 employee? a jump in income could cause a problem.

You have the option to ask IRS to calculate your penalty instead of TurboTax in which case do not pay the penalty now.

I don't understand the claim by others the TurboTax penalty is an estimate.

Other tax software calculates the correct penalty, not an "estimate" that IRS has to correct.

@48908d580c30 

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