Estimated Tax Penalty

You may owe this penalty if:

Line 37 is at least $1,000 and it is more than 10% of the tax shown on your return, or

You didn’t pay enough estimated tax by any of the due dates. This is true even if you are due a refund.

For most people, the “tax shown on your return” is the amount on your 2025 Form 1040 or 1040-SR, line 24, minus the total of any amounts shown on lines 27a, 28, 29, and 30; Schedule 3, lines 9 and 12; and Forms 8828, 4137, 5329 (Parts III through IX only), and 8919. Also subtract from line 24 any:

Tax on an excess parachute payment,

Excise tax on insider stock compensation of an expatriated corporation,

Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance,

Look-back interest due under section 167(g) or 460(b).

When figuring the amount on line 24, include household employment taxes only if line 25d is more than zero or you would owe the penalty even if you didn’t include those taxes.

Exception.

You won’t owe the penalty if your 2024 tax return was for a tax year of 12 full months and either of the following applies.

You had no tax shown on your 2024 return and you were a U.S. citizen or resident for all of 2024.

The total of lines 25d, 26, and Schedule 3, line 11, on your 2025 return is at least 100% of the tax shown on your 2024 return (110% of that amount if you aren’t in the business of farming or fishing, and your adjusted gross income (AGI) shown on your 2024 return was more than $150,000 (more than $75,000 if married filing separately for 2025)). Your estimated tax payments for 2025 must have been made on time and for the required amount.

For most people, the “tax shown on your 2024 return” is the amount on your 2024 Form 1040 or 1040-SR, line 24, minus the total of any amounts shown on lines 27, 28, and 29; Schedule 3, lines 9 and 12; and Forms 8828, 4137, 5329 (Parts III through IX only), and 8919. Also subtract from line 24 any:

Tax on an excess parachute payment,

Excise tax on insider stock compensation of an expatriated corporation,

Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance, and

Look-back interest due under section 167(g) or 460(b).

When figuring the amount on line 24, include household employment taxes only if line 25d is more than zero or you would have owed the estimated tax penalty for 2024 even if you didn't include those taxes.

If the Exception just described doesn’t apply, see the Instructions for Form 2210 for other situations in which you may be able to lower your penalty by filing Form 2210.

Estimated Tax Penalty

Official source

You may owe this penalty if:

Line 37 is at least $1,000 and it is more than 10% of the tax shown on your return, or

You didn’t pay enough estimated tax by any of the due dates. This is true even if you are due a refund.

Tax on an excess parachute payment,

Excise tax on insider stock compensation of an expatriated corporation,

Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance,

Look-back interest due under section 167(g) or 460(b).

When figuring the amount on line 24, include household employment taxes only if line 25d is more than zero or you would owe the penalty even if you didn’t include those taxes.

Exception.

You won’t owe the penalty if your 2024 tax return was for a tax year of 12 full months and either of the following applies.

You had no tax shown on your 2024 return and you were a U.S. citizen or resident for all of 2024.

Tax on an excess parachute payment,

Excise tax on insider stock compensation of an expatriated corporation,

Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance, and

Look-back interest due under section 167(g) or 460(b).

If the Exception just described doesn’t apply, see the Instructions for Form 2210 for other situations in which you may be able to lower your penalty by filing Form 2210.