4 ms·
Have you heard of people paying fines for getting their taxes slightly wrong? I know people who spend 5 minutes filling out the form with rough adjusted guesse
by dguest 4y ago
Have you heard of people paying fines for getting their taxes slightly wrong?
I know people who spend 5 minutes filling out the form with rough adjusted guesses based on the previous year, send it in, and thus trigger the IRS sending the corrected version.
They will charge you extra [edit: I meant "the amount you owe"] if you underestimate, but this is hardly a fine.
- mike_d 4y ago"Charge you extra" is in fact the definition of a fine. :) If you are off by more than 10% or $5000 you have to pay 120% of the under payment plus interest from your filing date. If you overpay you just get a letter and a check with no interest.
- dguest 4y agoYeah that was badly phrased. I meant the amount you owe, but you answered my question. I guess it's worth doing the math to figure out when your guesstimate becomes more expensive than a tax prep service.