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 1000.
  • Your tax withholdings and credits are less than:Â
    • .90 of your current tax liability
    • 1 of your prior-year tax liability
    • 110% of your prior-year tax liability if your adjusted gross income (AGI) last year was more than 150000 or 75000 if you and your spouse file separately.

You’ll figure your penalty on Form 2210.

 

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