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.


Cathy Fisher

Common Cents Bookkeeping and Tax Preparation

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


P: 828-595-2835

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