To pay your estimated quarterly taxes you will need to fill out and file a Form 1040-ES. You will also need to file a statement explaining why you should be issued a waiver and provide supporting documents. The IRS does not issue penalty waivers automatically, you need to request one using a Form 2210. You did not miss the payment out of willful neglect.Īdditionally, the IRS will sometimes find it would be inequitable to impose a penalty if you underpaid your estimated tax due to a natural disaster or similar unusual situation.You are more than 62 years old or suffer from a disability.Your failure to make the payment was reasonable.Generally, a waiver is granted when the following are true: However, this only occurs in limited circumstances. If you request a waiver from the IRS, it will sometimes waive the underpayment penalties for your estimated taxes. Getting your underpayment penalty waived Likewise, if you underpay for a quarter you will be subject to a penalty based on each installment that you underpaid. If you don't estimate your quarterly taxes and make your payments, this will usually result in the IRS imposing penalties. Basically, anyone who receives income that is not subject to federal income tax withholding must pay estimated taxes, including those earning income from:
Most self-employed individuals will need to make estimated tax payments, but they are not the only ones.