New York Underpayment of Estimated Tax by Individuals and Fiduciaries
New York Underpayment of Estimated Tax by Individuals and Fiduciaries
Who must pay the underpayment penalty
You may be charged a penalty if you did not pay enough estimated tax by any of the due dates or if you did not have enough New York State, New York City, or Yonkers income tax withheld. This is true even if you are due a refund when you file your tax return. The penalty is computed separately for each due date. Therefore, you may owe the penalty for an earlier payment due date, even if you paid enough tax later to make up the underpayment.
In general, you may owe the penalty for 2021 if you did not pay at least the smaller of:
• 90% (66⅔% for farmers and fishermen) of the amount of tax shown on your 2021 return; or
• 100% of the tax shown on the 2020 return (110% of that amount if you are not a farmer or a fisherman and the New York adjusted gross income (or net earnings from self-employment allocated to the Metropolitan Commuter Transportation District (MCTD)) shown on that return is more than $150,000 ($75,000 if married filing separately for 2021)). You must have filed a return for 2020 and it must have been for a full 12-month year; or
• 90% of the tax computed by annualizing the taxable income received for the months ending before the due date of the installment.
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