P>Hi, my name is Balaji. Jack Ma am I practicing intelligent? I thought of making a video presentation on estimated taxes penalty. So, estimated taxes in Aldie in this country, the United States of America. Okay, the IRS requires certain people to pay taxes in advance through the system called estimated taxes. They need to estimate an approximation tax. There is a definition for this approximation which we'll talk about later. They have to estimate their taxes and pay in advance. The IRS says certain people must pay taxes and they need to find out how much their taxes will be. They can work out their actuals and try to pay 90% of their current year taxes. If they cannot do that, they can pay 100% of last year's taxes. If their AGI was $150,000 last year, which is more than $150,000, they should pay at least 110% of last year's taxes. So, they'll be okay and not pay any taxes if they satisfy this requirement. Also, certain people at the time of filing taxes, after paying all the stimulus taxes and withholding taxes, if their liability is less than $1,000, they're okay and will not pay any estimated taxes penalty. But if some individuals' tax liability is more than $1,000, they are cutting a check for more than $1,000 at the time of filing taxes and they are in trouble. They should have settled this at least before dinner. There is a deadline for the four quarters of estimated taxes to be paid at certain deadlines, so that's a requirement. If you cannot make estimated tax payments and if you are a W-2 employee for some company, ask your employer to withhold more taxes. That is the other way to safeguard your situation at the end of the year...
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