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How do I know how much the IRS thinks I owe in taxes?

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  • How do I know how much the IRS thinks I owe in taxes?

    I filed taxes for the first time in 2015 using the Turbotax. It comes up with "estimated taxes."

    If however I don't pay all the taxes the IRS thinks I owe by the April 15th due date, they will bill me for the remainder with interest penalties.

    My question is, if my tax software fails and underestimates how much I owe, what can I do to protect myself from penalties for underpaying?

    How do I know what the IRS thinks is my tax liability before getting a penalty?

  • #2
    For US tax related questions, the IRS web site has a lot of information.



    Were your estimated taxes based on 100% of your 2015 taxes?

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    • #3
      Usually if by year end you pay (or have withheld) taxes at least equal to the amount paid the prior year (100%) you will not be hit with an underpayment penalty. There are some situations in which 90% is sufficient and others in which 110% must be paid, so you should read up on the details.

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