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Case Study 1: Estimated Tax PenaltyMark's total tax is $1,657 for the current tax year. He had $417 in withholding. Mark owes $1,240. His prior year's tax was $2,000. Will Mark be charged an estimated tax penalty? Click here for an explanation. Mark will probably be charged an estimated tax penalty because the amount he owes is over $1,000 and his withholding and credits are less than 90% of his current year tax or 100% of his prior year tax. 
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