Article: 50536
Overview
If you did not pay enough income tax throughout the year either through withholding or estimated payments, you may owe an underpayment penalty. Massachusetts requires taxpayers to meet certain thresholds for timely and adequate tax payments during the year. If those thresholds are not met, you must calculate the penalty using the Underpayment Penalty Worksheet (Form M-2210).
When Is the Underpayment Penalty Required?
You may be subject to the underpayment penalty if:
- You owe more than $400 in tax on your Massachusetts return after subtracting all withholding and credits.
- You did not pay at least 80% of your current year’s tax liability or your prior year tax liability through estimated payments and withholding.
- Your estimated payments were made late or unevenly during the year.
Note: Massachusetts applies penalties and interest separately. You may use Form M-2210 to determine if a penalty is due and, in some cases, request a waiver.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select Massachusetts.
- Click on the Other tab.
- Select Underpayment Penalty to open the screen.
- Enter all applicable information.
- Click Save once complete.
Additional Resources
For detailed instructions on your Massachusetts return, refer to the official tax guide.