Are There Penalties for Not Paying Quarterly Estimated Taxes?
If you do not make estimated quarterly tax payments or do not pay enough tax throughout the year, you may have to pay a penalty and interest. The IRS charges interest on any underpayment from the due date until the date of payment.
Each state has its own tax laws and requirements for estimated tax payments. Check with your state's Department of Revenue or taxation authority to understand the specific rules, deadlines, and penalties regarding your state estimated tax payments.
Generally, if you owe less than $1,000 in taxes or if you paid at least 90% of the tax for the current year, you can avoid any penalties.
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