turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Never mind thank you

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

Never mind thank you

The IRS has a "pay as you go" system, which means you're supposed to pay taxes throughout the year as you earn or receive income, rather than sending a big lump sum to the IRS at the end of the year. If you owe more than $1,000 when you calculate your taxes, you could be subject to a penalty. 

 

Ways to avoid an underpayment penalty:

  • Pay at least 90% of the tax you owe for the current,
  • Pay 100% of the tax you owed from the previous tax year,
  • Owe less than $1000 in tax after subtracting the amount withheld and credits. 
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question