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

What You Need to Know About an IRS Statutory Notice of Deficiency

The Statutory Notice of Deficiency is part of a series of notices sent by the IRS to propose additional tax, penalties and interest. Learn more from the tax experts at H&R Block.

Taxes, Basketball, And Bracketology | 2017 Tax Brackets

What do 2017 federal tax brackets and March Madness have in common? The Tax Institute Director Gil Charney weighs-in. Read more from H&R Block.

Estimated Tax Form 1040ES

Do you need to file estimated taxes each quarter? Learn more about quarterly tax payments and get tax answers at H&R Block.

PATH Act 2018: Impact On Your Taxes

Get the latest updates on the Protecting Americans from Tax Hikes Act. Learn how the PATH Act may affect your tax refund this year.