Question

Do I have to pay the full amount each quarter for estimated tax payments or can I pay a lower amount?

Forum|Forum|6 years ago
March 16, 2020
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TurboTax Premier Online

Employee

You can pay a lower amount, put you risk being subject to an underpayment penalty when you file next year. The current penalty rate is 5%, annualized.

A penalty is only due if:

- 1. You owe at least $1,000 in tax for the current tax year, after subtracting your withholding, estimated payments and credits and
- 2. Your withholding and credits are less than the smaller of: 90% of the tax to be shown on your current year’s tax return (2020), or 100% of the tax shown on your prior year’s (2019) tax return.