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 Form M15C Additional Charge for Underpayment of Estimated Tax 2021

M15c 2021-2025 Form

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Instructions and help about Form M15C Additional Charge For Underpayment Of Estimated Tax

no one enjoys writing a check out to the IRS or a state especially when they've prepared the return had a bunch withheld and then find they owe a balance still and on top of that maybe adding insult to injury there's underpayment penalties and interest let's talk through some examples so that you know now whether whether it's the end of the year and you can make an estimated tax payments or you're at the beginning of the year and you can adjust your withholdings and target those out for what you want how to avoid all of that it's called safe harboring and we're gonna look at an example here a couple examples of how we get to those numbers it sounds really involved but it's actually really easy so looking at last year's return they made a hundred thousand using really round numbers for ease of understanding they made a hundred their tax was ten out of their paychecks this couple had nine thousand dollars taken out s

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