Do I still need to pay quarterly estimated tax payment for 2020 if...?

[jdelarosa11 0]

Hello VJ community! My husband and I are self-employed. On our 2019 tax return, we filed MarriedFillingJointly (MFJ) and paid less than $1,000 of tax (roughly about $940 tax paid).

 

Now for 2020, I am assuming that our self-employment tax will be greater than $1,000 this year. I am wondering, do I still need to pay quarterly estimated tax payment for 2020?

Or I don’t have to worry about it now because our 2019 total tax paid (less than $1,000) gives us exception for the underpayment penalty?

 

 

Source: https://www.irs.gov/instructions/i2210#idm140641571540768

“Exceptions to the Penalty

You won't have to pay the penalty or file this form if either of the following applies.

The total tax shown on your 2019 return minus the amount of tax you paid through withholding is less than $1,000. To determine whether the total tax is less than $1,000, complete Part I, lines 1 through 7.”

 

Thank you in advanced!

Edited September 26, 2020 by jdelarosa11

[JeanneAdil 6,504]

complete that worksheet 1 thru 7 much as i do to see if any of my annunity is taxable

that will give you your answer

we can't say without knowing 1 thru 7 amounts 

[Wuozopo 4,293]

18 hours ago, jdelarosa11 said:

Hello VJ community! My husband and I are self-employed. On our 2019 tax return, we filed MarriedFillingJointly (MFJ) and paid less than $1,000 of tax (roughly about $940 tax paid).

Just to get clarification , do you mean that you owed $940 to the IRS with your 2019 return or your  total tax on line 16 was $940?  I ask because sometimes people confuse what they might owe the IRS as their tax.

 

An easy way to determine if you will have a penalty for underpayment:

Look at your 2019 return Form 1040 Line 16 called total tax.

Pay in at least 100% of that amount as 2020 estimates and you won’t be penalized.