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Author: Actuarystdtjk One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Please clarify- PENALTY? Date: 2/2/2000 10:59 AM
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Hello all, I have a question regarding underwithholding.

I just scanned the board for 'payroll status' and got some information, so I think I have this situation understood. But if someone could please confirm the following it would be a big help.

A friend of mine has a big problem this year. He just got married last summer, and after their wedding both he and his wife had their payroll status changed from 'single' to 'married'. As expected, they got a bit more cash in their paychecks, and were happy. This week they did their taxes, found they owed more than $1,000 in tax, plus a $1,000 penalty, and were not happy.

He calls me to ask whats up. After my search on this board, I think the rule is that you have to have at least 90% of your years tax obligation withheld from your paycheck, or there's a penalty. Or, if you owe more than $1,000 there is a penalty.

Can someone please confirm this? All help is appreciated, thanks- JK
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