Why do I have a penalty?

jfsgreen · ‎February 25, 2026

JohnB5677 · ‎February 25, 2026

You will have a penalty if you don't fulfill at least one of these IRS requirements.

You paid 90% of the tax that you owe for the current year. 
If the current taxes paid are equal to 100%, (110% for higher incomes) of your taxes owed the previous year. 
The IRS also says you can probably avoid the penalty if the amount you owe is less than $1,000.

To avoid this, you should change your W-4 to take extra taxes from your paycheck, or pay estimated taxes.

For more information, see, Avoid a tax penalty

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DoninGA · ‎February 25, 2026

JohnB5677 · ‎February 25, 2026

You will have a penalty if you don't fulfill at least one of these IRS requirements.

You paid 90% of the tax that you owe for the current year. 
If the current taxes paid are equal to 100%, (110% for higher incomes) of your taxes owed the previous year. 
The IRS also says you can probably avoid the penalty if the amount you owe is less than $1,000.

To avoid this, you should change your W-4 to take extra taxes from your paycheck, or pay estimated taxes.

For more information, see, Avoid a tax penalty

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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