penalized for not paying estimated taxes?
in 2008, i owed >$1000 and hence i was supposed to pay estimated taxes. i was supposed to make 4 payments of around $1000. i paid around $1000 then never made another payment.
this year (2009), i was again short around $1500. i assume there is some sort of penalty for this, but i am unclear how or when this is going to happen.
i plan to adjust my withholdings this year so i won't owe next year, so i don't plan on paying any estimated taxes in 2010.
to the person that est. taxes are only for self employed, no that's wrong. you also have to pay the next year if you owe greater than $1000 at the end of the current year. makes sense. IRS wants they money up front and they are going to charge you interest if you don't give it to them.
as for my tax liability, are you asking how much i owed at the end of the year? otherwise i don't know what you mean. in 2008 i owed around $1800 and in 2009 i owed $1500, taking into account the one est. tax payment i made.