Underpayment of Estimated Tax by Individuals Penalty 2025

1. Click ‘Get Form’ to open it in the editor.
2. Begin by entering your name and Social Security Number as shown on your tax return. Ensure accuracy for proper identification.
3. In Section 1, compute your required annual payment by entering your 2023 tax liability on Line 1 and your 2022 tax liability on Line 2. Then, enter the smaller amount from these two lines on Line 3.
4. Next, indicate the number of payments required for the year in Line 4. This will help determine your payment schedule.
5. Move to Section 2 and calculate the required payment by dividing the amount from Line 3 by the number of payments indicated in Line 4. Fill this value in Line 5.
6. For each payment period, enter the amounts paid in Line 6 and any carryforward amounts from previous periods in Line 7.
7. Finally, subtract Line 5 from Line 8 to determine if there is an underpayment or overpayment for each period. Record these results accordingly.

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