Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
This year, I'm paying an Underpayment Penalty to California of a whopping $20. Big deal!

However...

1. About how much more would I have to withhold from my paycheck to avoid this penalty?

2. I'm wondering if it's better to not change anything. I naively figure that it would be okay to pay at the end of the year plus a penalty, rather than filing Estimated Tax Payments or increasing withholding. That is, the money I delay paying to the State would do just fine being invested.

3. Would regularly paying an Underpayment Penalty trigger an audit? Of course they're out to get me. (:

Please reply as well a post.


Thanks,


Washu! ^O^
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.