IRS Publication 17 — Your Federal Income Tax (Individuals)

Underpayment Penalty for 2025 If you didn’t pay enough tax, either through withholding or by making timely estimated tax payments, you will have an underpayment of estimated tax and you may have to pay a penalty. Generally, you won’t have to pay a penalty for 2025 if any of the following apply.

• The total of your withholding and estimated tax payments was at least as much as your 2024 tax (or 110% of your 2024 tax if your AGI was more than $150,000: $75,000 if your 2025 filing status is married filing separately) and you paid all required estimated tax payments on time.

• The tax balance due on your 2025 return is no more than 10% of your total 2025 tax, and you paid all required estimated tax payments on time.

• Your total 2025 tax minus your withholding and refundable credits is less than $1,000.

• You didn’t have a tax liability for 2024 and your 2024 tax year was 12 months.

• You didn’t have any withholding taxes and your current-year tax less any household employment taxes is less than $1,000.

Farmers and fishers. Special rules apply if you are a farmer or fisher. See the Instructions for Form 2210-Ffor more information.

The IRS can figure the penalty for you. If you think you owe the penalty but you don’t want to figure it yourself when you file your tax return, you may not have to. Generally, the IRS will figure the penalty for you and send you a bill. However, if you think you are able to lower or eliminate your penalty, you must complete Form 2210 or Form 2210-Fand attach it to your paper return. See the Instructions for Form 2210 for more information.

Publication 17 (2025) Chapter 4 Tax Withholding and Estimated Tax 45