Get Form 2210ME Underpayment Of Estimated Tax - Maine.gov

If you did not pay enough estimated tax or have enough tax withheld from your earnings by any due date for paying estimated tax, you may be subject to a penalty. For calendar year 2023, the underpayment penalty is 7%, compounded monthly. For calendar year 2024, the underpayment penalty is 10%, compounded monthly.

To request a waiver when you file, complete IRS Form 2210 and submit it with your tax return. With the form, attach an explanation for why you didn't pay estimated taxes in the specific time period that you're requesting a waiver for. Also attach documentation that supports your statement.

If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax.

Simply put, underpayment of estimated tax occurs when you don't pay enough tax when you pay quarterly estimated tax payments. Failure to pay the right amount of estimated tax throughout the year might result in a penalty for underpayment of estimated tax.

IRS Form 2210 calculates the penalty for underpaying your estimated taxes. We'll automatically generate Form 2210 if your return needs it. Follow these steps if you need to make any adjustments: Sign in to TurboTax and open or continue your return.

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.

Purpose of Form Use Form 2210 to see if you owe a penalty for underpaying your estimated tax. The IRS will generally figure your penalty for you and you should not file Form 2210. You can, however, use Form 2210 to figure your penalty if you wish and include the penalty on your return.

Use Form 2210 to determine the amount of underpaid estimated tax and resulting penalties as well as for requesting a waiver of the penalties. You may need this form if: You're self-employed or have other income that isn't subject to withholding, such as investment income.