Form IT-2105 9 Underpayment of Estimated Income Tax By Individuals and Fiduciaries Tax Year 2023-2025

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How to use or fill out Form IT-2105 9 Underpayment of Estimated Income Tax By Individuals and Fiduciaries Tax Year 2023

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin with Part 1, entering your name(s) and identification number (SSN or EIN) at the top of the form.
  3. Complete line 1 by inputting the total tax from your 2023 return before any withholding and estimated tax payments.
  4. Fill in lines 2 through 10 with applicable credits from your Form IT-201, ensuring accuracy for each credit type.
  5. Calculate your current year tax by subtracting line 11 from line 1, and enter this value on line 12.
  6. Proceed to Part 2 if you have made estimated tax payments; otherwise, complete Part 3 for regular computation methods.
  7. Follow the instructions carefully for calculating penalties in Parts 2 and 3, ensuring all calculations are precise.

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You will receive an IRS notice if you underpaid estimated taxes. They determine the tax underpayment penalty by calculating the amount based on the taxes accrued (total tax minus tax credits) on your original tax return or a more recent one you filed.
The law allows the IRS to waive the penalty if: You didnt make a required payment because of a casualty event, disaster, or other unusual circumstance and it would be inequitable to impose the penalty, or.
If you do not pay your tax when due, we will charge you a penalty in addition to interest. The penalty may be waived if you can show reasonable cause for paying late. The penalty charge is: 0.5% of the unpaid amount for each month (or part of a month) it is not paid, up to a maximum of 25%
Estimated tax payment safe harbor details The IRS will not charge you an underpayment penalty if: You pay at least 90% of the tax you owe for the current year, or 100% of the tax you owed for the previous tax year, or. You owe less than $1,000 in tax after subtracting withholdings and credits.
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