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In my experience, if I underpay my tax, they will come at me and demand penalty and interest. If I overpay my tax, they will do nothing. This is by design, I th
by attractivechaos 3y ago
In my experience, if I underpay my tax, they will come at me and demand penalty and interest. If I overpay my tax, they will do nothing. This is by design, I think.
- creato 3y agoI’ve overpaid my tax, they told me about it and IIRC I just got one letter with a check in it, I didn’t need to do anything. I’ve also underpaid and my experience was basically the same (except I had to send a check instead obviously). Edit: and the “penalty” was just modest interest on the underpayment.
- alistairSH 3y agoGenerally, you're exempt from IRS penalty if you do either of: - pay >90% of owed amounts via estimated taxes or withholdings - pay >=100% of your previous year's earnings If you're underpaying by more than that, there's a high chance you're doing so on purpose. Or made a fairly egregious error (in which case, the penalty was probably assessed later upon audit). And if you overpay, you get a refund, not nothing.