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I am filling a 1040 because I sold stock last year. I did not have any federal taxes witheld when I sold the stock. My wife and I are filing jointly and owe $4054. We have $2884 in witholding. So we still owe $1170. I am worried about tax penalties now because the 1040 form says you may be penalized if: You owe more than $1000 and what you owe is more than 10% of your total taxes. Now if we file seperatly, my wife owes $191 and I owe $982. This makes our grand total owed $1173 but neither of us goes over the $1,000 mark. I dont even know if this penalty will apply to us. It is part of the household employee part at the end of the instructions. We did not have household employees but we do meet the other criteria (owing more than 1000 and what we owe is more than 10% of total taxes)
So after all is said and done, should we file jointly (owing 1170), file seperatly (wife 191, me 982), or do these penalties even apply to us.
Thank you very much for your help,
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