I received a Form 1099-MISC but didn’t make a quarterly estimated taxes payment during the year. Will I owe an underpayment penalty?
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.
The SS-4 form is a tax form used for small business owners to apply for an Employer Identification Number (EIN). Learn more.
Learn about the benefits you might receive if you pay your taxes early. H&R Block’s experts explain what you should do if you owe an underpayment penalty.
Learn about the Tax Reform impact on higher education. There are both benefits and drawbacks that come with the new tax bill and affording college tuition.
Learn how tax reform will affect you and your family. Our tax reform infographic will help you understand the new tax law’s impact.