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shhaughey
New Member

I'm self-employed as of last June, and my 2018 tax return currently says I have no underpayment penalties even though I didn't pay estimated taxes. Is this true?

 
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Accepted Solutions
Hal_Al
Level 15

I'm self-employed as of last June, and my 2018 tax return currently says I have no underpayment penalties even though I didn't pay estimated taxes. Is this true?

Probably. There are penalty exceptions. No under payment penalty is due if:

1. You owe less than $1000

or
2. Your withholding and credits were more than 90% of this year's tax

or

3.Your withholding and credits were more than  100% of the tax shown on your prior year’s tax return. 

View solution in original post

2 Replies
Hal_Al
Level 15

I'm self-employed as of last June, and my 2018 tax return currently says I have no underpayment penalties even though I didn't pay estimated taxes. Is this true?

Probably. There are penalty exceptions. No under payment penalty is due if:

1. You owe less than $1000

or
2. Your withholding and credits were more than 90% of this year's tax

or

3.Your withholding and credits were more than  100% of the tax shown on your prior year’s tax return. 

View solution in original post

shhaughey
New Member

I'm self-employed as of last June, and my 2018 tax return currently says I have no underpayment penalties even though I didn't pay estimated taxes. Is this true?

Makes sense - thanks for your help!
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