Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Why should I owe a penalty for failing to pay estimated taxes when I received a refund for the prior year?

April 26, 2017estimated failing pay penalty prior received refund taxes year

0

0 Posted

Why should I owe a penalty for failing to pay estimated taxes when I received a refund for the prior year?

1 Answer

0

0 Posted

Since the estimated tax penalty is based upon your prior or current year income tax liability (not withholding or estimated tax payments), you may be subject to the penalty even if you had a refund for your prior year return.