Video instructions and help with filling out and completing Where Form 2220 Pros

Instructions and Help about Where Form 2220 Pros

Music the United States income tax system is a pay-as-you-go tax system which means that you must pay income tax as you earn or receive your income during the year you can do this either through withholding or by making estimated tax payments if you don't pay your tax or you pay an insufficient amount of tax through withholding you might also have to pay estimated taxes 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 under payment of estimated tax generally most taxpayers will avoid this penalty if they either a less than $1,000 in tax after subtracting their withholding and estimated tax payments or if they paid at least 90 percent of the tax for the current year our 100 percent of the tax shown on the return for the prior year whichever is smaller there are special rules for farmers and fishermen certain household employers and certain higher income taxpayers generally taxpayers should make estimated tax payments in for equal amounts to avoid a penalty however if you receive income unevenly during the year you may be able to vary the amounts of the payments to avoid or lower the penalty by using the annualized installment method use form 2210 under payment of estimated tax by individuals estates and trusts to see if you owe a penalty for under paying your estimated tax the law allows the IRS to waive the penalty if you didn't make a required payment because of a casualty event disaster or other unusual circumstance and it would be inequitable to impose the penalty or you retired after reaching age 62 or became disabled during the tax year or in the proceeding tax year for which you should have made estimated payments and the under payment was due to reasonable cause and not willful neglect refer to the form 1040 instruction or the form 1040 instructions for where to report the estimated tax penalty on your return Music you Music