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Underpayment Penalty

If the taxpayer did not have enough withholding or estimated tax payments and owes more than $1,000 to the IRS, he may owe an underpayment penalty may.  For 2019, a taxpayer is subject to an underpayment unless total withholding and estimated payments equal the smaller of:


  • 90% of the tax shown on the 2019 tax return, or

  • 100% tax shown on the 2018 tax return (110% if the taxpayer’s 2018 AGI was more than $150,000 ($75,000 if his 2018 filing status was Married Filing Separately)).

The required tax payments must be paid on time.

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Cathy Fisher

Common Cents Bookkeeping and Tax Preparation

Serving Henderson, NC, Buncombe County, Polk County, Transylvania County

E: cathy@commoncentsqbo.com

P: 828-595-2835

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