Quote:
Originally Posted by Haggar
If you haven't paid in 90% of your current taxes or 100% of last year's tax you've got a penalty. The IRS doesn't care if it's from withholding or quarterly estimates. That's the penalty part - there's also an interest calculation if it's not paid in as required.
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I would just point out, that if your income is high enough, you actually need to pay more than 100 percent (I think it is 110 percent) of the prior year tax in estimated taxes to avoid a penalty.