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BTRR
April 1, 2025
Question

Can I Avoid the "Underpayment of Tax" Penalty?

  • April 1, 2025
  • 1 reply
  • 0 views

For tax year 2025, if I make quarterly estimated tax payments that result in my tax due being under $1,000, will this avoid the "Underpayment of Tax" penalty?  Please advise.  Many thanks.

1 reply

M
MinhT1
April 1, 2025

Yes.

 

Please read this IRS document for more information.

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    Employee
    April 1, 2025

    "result in my tax due being under $1,000,"

     

    Estimated Tax payments do not work for this test.

    Only withholding can be used to bring the amount you owe below $1,000 and escape penalty.

     

     

    If you find a penalty on Line 38, See Form 2210 Schecdule AI if you want to try to reduce that penalty.

     

    @BTRR 

     

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