I do not want to be billed for or pay quarterly estimated taxes. How can I avoid a penalty?

Effective for tax years beginning in 2016, you will not be penalized for not making estimated tax payments unless your tax liability is greater than $200. There are two ways to avoid being penalized: 

  1. When you file your annual tax return, calculate and pay the total you estimate you will owe for the next year, along with any balance due for the current year, or 
  2. Pay by January 15 of the following year, an amount equal to 90% of your total tax liability for the year, or 100% of your prior year tax liability. (Your total tax liability for the prior year is not necessarily the balance you owed when you filed your tax return.) Please note: For individual taxpayers, beginning with tax year 2018 (returns filed in 2019), the final due date to pay your estimated taxes is January 15. This is a change in the law mandated by the State. For businesses, the deadline to pay estimated taxes is still December 15.

If you do one of these two things, you will not be subject to penalty or interest, provided your annual tax return is timely filed.

Show All Answers

1. How do I request a refund for working from home due to COVID-19?
2. Who is required to file a Wadsworth tax return?
3. If I'm retired, do I have to file a tax return?
4. I am under 18 years old and work part-time. Do I need to file a tax return?
5. When is the annual City tax return due?
6. What if I cannot get my taxes done by the due date?
7. If I am a resident and work in Wadsworth, do I still have to file a tax form?
8. How do I know whether I live and/or work in the City of Wadsworth?
9. If I work outside of Wadsworth and my employer withholds income tax for the city where I work, do I still have to pay tax to Wadsworth?
10. How do I find the income tax rate of the city where I work?
11. When do my taxes have to be paid?
12. I owe taxes and am unable to pay. Should I still file my return?
13. My spouse and I file separately for Federal and State taxes. Do we have to file the same way for Wadsworth taxes?
14. How can I receive bills for my taxes so I can pay them during the year instead of having to come up with all the money at once?
15. I do not want to be billed for or pay quarterly estimated taxes. How can I avoid a penalty?
16. I pay my taxes in full when I file my return, and I get bills for penalty and interest. Why does this happen?
17. Why does the City use an outside company for the administration of our taxes?
18. What are the top ten mistakes made when completing a city income tax return?
19. How much income tax does the City collect and how is the money used?