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BigDave

Joined: 09/18/2001 Posts: 54676
Likes: 3123


Maybe, please see Form 2210, which allows you to request a waiver (link)


They do allow you to request a waiver due to unintended effects of tax reform as long as you paid at least 85% of your tax obligation. But if you paid at least 90%, you don't owe a penalty anyway, so it's a very narrow sweet spot to get that waiver.

Is your total federal tax obligation less than $20K? In order to owe a penalty, you have to have prepaid less than 100% of what you owed last year or 90% of what you owe this year. So in order to owe a penalty, your federal income tax has to be under $20K. (Actually, there is a new stupid rule that if you make over $150K, then 100% of last year isn't enough to escape the penalty - it has to be 110% of last year. But 90% of this year is still good.)

But even if you owe a penalty, it isn't that much - it's essentially 5% interest (assessed on a daily basis). So assuming your $2K is evenly spread out over the year (as opposed to all of your income came in January 2018 and you earned nothing the rest of the year), you're looking at less than $50.

Just pay your $2K ASAP - don't wait until April 15.

(In response to this post by FfxStationHokie)

Link: https://www.irs.gov/pub/irs-pdf/i2210.pdf


Posted: 02/04/2019 at 08:36AM



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Current Thread:
 
  
Tax penalties waived this year? -- FfxStationHokie 02/04/2019 08:11AM
  BigDave is correct, request a waiver on Form 2210 -- vawter85 02/04/2019 10:49AM
  You're probably thinking of this (link) -- Hokie360 02/04/2019 09:24AM
  I don't understand those sorts of tax penalties -- WestyHokie 02/04/2019 09:12AM
  Different penalty -- BigDave 02/04/2019 10:56AM
  That's what I was thinking -- MAHokie69 02/04/2019 10:06AM
  W-4 directions? ** -- 133743Hokie 02/04/2019 5:04PM

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