Quote:
Originally Posted by tadd
Sammy:
How did you avoid paying interest? It is my understanding that anything over $1k involves a fine.
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Normally, you have to pay (withhold) at least 90 percent of your tax liability in order to avoid penalties and interest.
Last month they lowered that to 85% because they didn't properly update the withholding tables to reflect elimination of some deductions when the tax laws changed.
The percentage they withheld from us was high enough.to avoid interest or penalties.
Now if you file LATE, the interest is charged on anything over $1k but we never file late.