Hello, thanks for your time.While it should be straightforward, I'm unable to understand the below bulleted sentence when reading through responses here."Will you owe less than $1,000 in taxes for the tax year after subtracting your federal income tax withholding from the total amount of tax you expect to owe thisWhat determines $1,000 in taxes? Is that the amount that should've been withheld (i.e. if you had an employer they would withhold that in paychecks and it adds up overtime?)

TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

MK210

Question

Confused about the "$1,000 in taxes" guideline

Forum|Forum|1 year ago
August 28, 2024
2 replies
0 views

Hello, thanks for your time.

While it should be straightforward, I'm unable to understand the below bulleted sentence when reading through responses here.

"Will you owe less than $1,000 in taxes for the tax year after subtracting your federal income tax withholding from the total amount of tax you expect to owe this

What determines $1,000 in taxes? Is that the amount that should've been withheld (i.e. if you had an employer they would withhold that in paychecks and it adds up overtime?)

VolvoGirl

Employee

It's simply the tax due when you file your tax return. Like if your withholding wasn't enough to cover the tax on your income. If you are not getting a refund you have a tax due.

Mike9241

It's complicated because certain taxes are included but not all and certain credits are allowed but not all. The result is the tax number. From that Federal withholding is subtracted to arrive at a balance. if the result is less than $1000 there is no penalty for failure to pay estimated taxes

see for 2210 and the instructions for the form.

https://www.irs.gov/forms-pubs-search?search=2210