Question

I received a Form 1099-MISC but didn’t make a quarterly estimated taxes payment during the year. Will I owe an underpayment penalty?

Answer

Maybe. You might owe an underpayment penalty for tax underpaid if:

  • Your total tax for the current year minus withholding and credits is more than $1,000.
  • Your tax withholdings and credits are less than:Â
    • 90% of your current tax liability
    • 100% of your prior-year tax liability
    • 110% of your prior-year tax liability if your adjusted gross income (AGI) last year was more than $150,000 or $75,000 if you and your spouse file separately.

You’ll figure your penalty on Form 2210.

 

Related Topics

Related Resources

Planning to Deduct Charitable Contributions? Tax Reform May Change That

When it comes to philanthropic giving and larger charitable contributions, tax reform may change how you deduct gifts. Learn more from H&R Block's experts.

Tax Records

Learn how long you should keep your tax records in case return is selected for examination or if you receive an IRS notice. Get the facts from H&R Block.

Direct Deposit Tax Refund Delays

Issues with your bank account could cause tax refund delays. Learn more about direct deposit tax refunds from the tax experts at H&R Block.

What Is The Penalty For Late Taxes?

Do you have to pay a penalty if you file your taxes late? Look at fees and exemptions and get tax answers at H&R Block.