Reported 8 months ago
Tax penalties have risen for estimated tax payments as millions of Americans, especially self-employed workers, must make quarterly payments to the IRS. Missing the recent deadline can lead to penalties that have significantly increased this year due to the 'Underpayment of Estimated Tax by Individuals Penalty.' Interest rates have spiked to 8%, and in fiscal year 2023, the IRS assessed $7 billion in estimated tax penalties. To avoid penalties, taxpayers should pay at least 90% of the tax shown on the 2024 return or 100% of the previous year's tax, as per H&R Block's chief tax officer, Kathy Pickering.
Source: YAHOO