Underpayment penalty
Interest-based penalty
Can You Write Off Underpayment Penalty?
Short answer: Avoid it by paying 90% of this year's tax or 100% of last year's (110% if AGI was over $150,000) through withholding or estimates.
Your filing status and credits are set by your situation on December 31 and what you report on Form 1040; keep the IRS notices and forms behind each claim.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
Underpayment penalty
Typical range: Interest-based penalty
Individuals / Personal Taxes
Avoid it by paying 90% of this year's tax or 100% of last year's (110% if AGI was over $150,000) through withholding or estimates.
Business justification
Avoid it by paying 90% of this year's tax or 100% of last year's (110% if AGI was over $150,000) through withholding or estimates. Your filing status and credits are set by your situation on December 31 and what you report on Form 1040; keep the IRS notices and forms behind each claim.
Category
- Personal Tax Deductions