After so many years of getting a refund, I think I'm going to owe some money this year on my taxes.
Is there any instant penalties or charges in addition to the tax I owe that needs to be included in the payment?
2006-12-01 17:06:56 · 2 answers · asked by HP fan 1 in Business & Finance ➔ Taxes ➔ United States
If you only owe a small amount, then you'll probably be OK. If you've paid in at least 90% of what you owe, or 100% of what you owed last year, there won't be a penalty. If you owe more than that, then there might be.
Pay what taxes you owe with your return. If you owe any penalties or interest, they'll bill you for it.
2006-12-01 17:56:29 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
It depends. Usually you can go by the safe harbor rule. As long as either 90% of the current year's tax is paid by 1/15/07 OR 110% of last year's tax is paid by 1/15/07, you should be fine.
If you need help figuring out how much should be paid in, please consult a tax professional.
2006-12-01 17:10:03 · answer #2 · answered by Bean counter 3 · 2⤊ 0⤋