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.
How long penalty abatement takes depends on the type of penalty relief you’re requesting. Learn more from the tax experts at H&R Block.
If you sold stock, bonds or other securities through a broker or had a barter exchange transaction, you will likely receive a Form 1099-B. Learn more from H&R Block.
Need help deciding if you need to file an amended return (IRS Form 1040X)? Get the facts from the tax experts at H&R Block.
Your excess estimated tax payments have been released and a refund will be sent to you. Learn more about IRS notice CP17 from the tax experts at H&R Block.