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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.
4 Answers
- ToYsTeMpTerLv 41 decade agoFavorite Answer
not enough info, what was your tax liability last and this year? ...based on the info you gave you shouldn't have a penalty...when you did your tax return this year did you factor in that you also paid the estimated payments?..its a common oversight..recheck to be sure
- Anonymous1 decade ago
If you should have paid $4000 in estimated taxes and only paid $1000, owing $1500, then you fall under a different calculation. The IRS can do it for you.
If you pay the amount due on 4/15/2010, you would owe about $33.25 in penalty.
- knowitallLv 71 decade ago
If you have withholding, you usually do not pay estimated. Estimated is for self-employed that do not have taxes withheld. If we had the Fair Tax, you would not have this problem.
- troLv 71 decade ago
yes, if you failed to pay any quarter, there are penalties and interest on each quarter
