WHY AM I BEING CHARGED AN UNDERPAYMENT PENALTY IN INDIANA

Forum|Forum|1 year ago
April 5, 2025
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LenaH

It depends. If you owe $1,000 or more in Indiana state and county tax for the year that’s not covered by withholding taxes, you need to make estimated tax payments throughout the year. If you did not make estimated payments, didn't make the payments on time, or didn't pay enough, you may owe a penalty.

You may also receive a penalty if the total of your credits, including estimated tax payments, is less than 90% of this year’s tax due or 100% of last year’s tax due (110% of last year’s tax if your federal adjusted gross income is more than $150,000 if you are a single filer or married filing jointly, or more than $75,000 if you are married filing separately).

DOR assesses a penalty of 10% of the underpayment amount for each installment period.

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