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

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

taxlee4
New Member

Why am i paying a penaltyinterest if i am paying my taxes in full on time

 
1 Best answer

Accepted Solutions

Why am i paying a penaltyinterest if i am paying my taxes in full on time

The IRS expects you to pay as you earn during the year. If you don't pay as you earn, you may be subject to an underwithholding penalty and interest. This can occur if you underwithhold from your pay or if there is no withholding form self employment income and you don't pay quarterly estimated taxes.

Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.Oct 10, 2016


View solution in original post

1 Reply

Why am i paying a penaltyinterest if i am paying my taxes in full on time

The IRS expects you to pay as you earn during the year. If you don't pay as you earn, you may be subject to an underwithholding penalty and interest. This can occur if you underwithhold from your pay or if there is no withholding form self employment income and you don't pay quarterly estimated taxes.

Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.Oct 10, 2016


Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question

Related Content

Manage cookies