Underpayment + Small Business Question

[aonsa]

What happens if I accidentally underpay? How can I prevent myself from underpaying? I feel fairly confident I filled out every category correctly but have no general sense if the amount is too much, not enough, or just right.

In the future, how do I as a small business owner estimate quarterly taxes if I have no idea what I expect to earn? The first few years are generally unpredictable/tumultuous.

And lastly, where would be the best place to simply have someone run over my numbers to make sure they’re correct? I’ve already filled everything out so I don’t expect the job to take longer than 10-20 min.

Thanks!!

[MaryK4]

For the federal tax return, the IRS can charge a failure to pay proper estimated penalty if your total estimated payments and withholdings don't equal the lesser of:

• 90% of the tax you owe for the current year, or
• 100% of the tax you owed in the prior year

You can also avoid the penalty if the amount you owe is less than $1,000.

TurboTax calculates the estimated tax vouchers based on your tax in the prior year so you will not have a penalty if you make those payments.