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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16579
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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If I underpaid my federal income tax in 2012, can I make an

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If I underpaid my federal income tax in 2012, can I make an additional payment now to avoid paying a penalty when i file my 2012 returns? I made more than $1.2MM in 2012.
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Thank you for your question, and thanks for using You would avoid the underpayment penalty if you paid in or had withheld at least 110% of your last year's federal income tax liability. However, the fourth quarter estimated payment is due on January 15th, so there's still time to make an estimated payment if necessary.

If you have paid in at least 110% of your prior year liability, you don't have to make that estimated payment. If not, then fill out form 1040-ES and send in your estimated payment to the IRS. Make sure you note your social security number and tax year on the front of your check.

CLICK HERE to read more about estimated payments and the underpayment penalty.

Please let me know if I can be of any additional assistance. Thanks for using and have a very happy New Years.

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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

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