If I pay estimated taxes equal to last years tax liability yet own more in 2007 will there be a penalty?

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If I pay estimated taxes equal to last years tax liability yet own more in 2007 will there be a penalty?

2007-10-23 06:19:52 · 2 answers · asked by popee1212 2 in Business & Finance ➔ Taxes ➔ United States

2 answers

No, if you've paid in at least as much as last year's tax liability there won't be a penalty even if you owe more. That's one of the exceptions to owing a penalty if you owe over $1000.

2007-10-23 07:24:00 · answer #1 · answered by Judy 7 · 0⤊ 0⤋

No penalty if you paid estimated tax "properly", which usually means 1/4 with each payment, and paid each by the due date.

2007-10-23 10:14:28 · answer #2 · answered by r_kav 4 · 0⤊ 0⤋