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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13158
Experience:  15years with H & R Block. Divisional leader, Instructor
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Hello, I live in Massachusetts (United States) and received

Resolved Question:


I live in Massachusetts (United States) and received an estimated state tax penalty for 2012. The issue was my estimated and/or witholding payments (I made none) were less than 80% of my total state income tax and my balance exceeded $400. I know I'm already going to get penalized again because I missed the April deadline. However, I'm going to pay now.

My question is how do I determine how much should I pay. Is it based on last year's amount or is it based on what I make each quarter? And is there a way I can just make one payment so I don't have to deal with this each month?
Submitted: 3 years ago.
Category: Tax
Expert:  Robin D. replied 3 years ago.

Robin D :

Hello and thank you for using Just Answer,
Yes you would base your estimates on the previous years tax. You could look at the tax liability and as long as you remitted 100% of that you would not have a penalty for 2013 nor would you need to make quarterly payments for your federal estimates.
To be really more accurate you should look at your income each quarter but if you just do not want to have a penalty then make a payment that is at least as much as your total tax liability for the previous tax year on your return.

Robin D :

For Mass you are required to make the 4 quarterly payments.

Robin D :

Estimated tax for annualized income allows taxpayers who earn their income unevenly throughout the year to adjust their estimated installment payments by annualizing their income. This way if you earn more in one quarter you would not be penalized but if you earn about the same in each quarter and made one payment the state could still penalize you.

Robin D :

I know that the quarterly payments are not easy to remember. If you decide to make one payment for the state then you should pay in at least 100% of your previous years liability like advised on federal.

Customer: replied 3 years ago.
To clarify... am I required to make 4 distinct payments for Mass or I will be penalized?

And if so, what is this quarterly payment supposed to be? A percentage of the previous quarter's earnings?
Expert:  Robin D. replied 3 years ago.
The quarterly payments should be 100% of the tax liability for the previous year divided by your 4 estimates. You would look to your 2012 tax return and see what your liability was, then divide that by your quarterly payments.
Mass does allow for you to make one payment instead of quarterly. They want that one payment by April though.
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