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Old 06-22-2018, 01:16 PM
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Penalty for Underpaid Tax Deposits

If my FIT in 2017 was $15,000 and I make equal quarterly deposits of $5,000 each ($20,000 total) in 2018 and my 2018 FIT ends up being $30,000, am I subject to any penalties so long as I pay the additional $10,000 by my filing date (April 15, 2019)?



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Old 06-24-2018, 12:02 AM
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No; you are OK; The easiest way to calculate how much you should be making in estimated tax payments is to divide last year's unfunded tax liability of $15K by 4 since as you can see, estimated payments are made quarterly. I mean you need to pay at least 15K/4=$3750( asyousaid you paid $5k each in 2018; $50K>$3.75K) per qtr of 2018. If the estimated taxes that are paid do not equal at least 90% of your actual tax liability of 208 or 100% or 110% of your prior-year 2017 I mean liability, depending on the level of AGI

then you do notowe any penalty to IRS.



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Old 06-24-2018, 12:12 AM
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No; you are OK; The easiest way to calculate how much you should be making in estimated tax payments is to divide last year's unfunded tax liability of $15K by 4 since as you can see, estimated payments are made quarterly. I mean you need to pay at least 15K/4=$3750( asyousaid you paid $5k each in 2018; $50K>$3.75K) per qtr of 2018. If the estimated taxes that are paid do not equal at least 90% of your actual tax liability of 208 or 100% or 110% of your prior-year 2017 I mean liability, depending on the level of AGI

then you do notowe any penalty to IRS.



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Old 06-25-2018, 11:39 AM
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Thank you. That's what I thought.



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