Get Payment Coupon Form

PPP loan amounts forgiven by the federal government are taxable in Utah, if: the loan was forgiven during the tax year. the value of the loan is not subject to federal income tax, and. the loan is used for expenses that are deductible for federal income tax purposes.

If your adjusted gross income (AGI) for last year exceeded $150,000, you must pay the lesser of 110% of last year's tax or 90% of this year's tax. Typically, underpayment penalties are 5% of the underpaid amount, and they're capped at 25%. Underpaid taxes also accrue interest at a rate that the IRS sets annually.

Extensions of Time to File You get an automatic extension of up to six months to file your return. You do not need to file an extension form, but we will assess penalties if you have not met the prepayment requirements (see below).

The penalty for underpaying an extension prepayment is 2 percent of the unpaid tax per month of the extension period.

Estimated tax payment safe harbor details The IRS will not charge you an underpayment penalty if: You pay at least 90% of the tax you owe for the current year, or 100% of the tax you owed for the previous tax year, or. You owe less than $1,000 in tax after subtracting withholdings and credits.

Underpayment of estimated tax occurs when you don't pay enough tax during those quarterly estimated tax payments. Failure to pay proper estimated tax throughout the year might result in a penalty for underpayment of estimated tax. The IRS does this to promote on-time and accurate estimated tax payments from taxpayers.

The penalty for underpaying an extension prepayment is 2 percent of the unpaid tax per month of the extension period.

8, 2023. The Utah Legislature has approved a $400 million tax cut package, more than half of which, $208 million, will go toward dropping Utah's income tax rate from 4.85% to 4.65%. The House and Senate both voted Thursday to pass HB54, the bill containing the entire tax reduction package.