Question

Interest on underpayment of 2021 New Jersey taxes.

Forum|Forum|1 year ago
January 4, 2025
2 replies
0 views

I got a statement saying that I underpaid my 2021 New Jersey taxes. The amount of underpayment is $237 but I'm getting an interest charge of $73 which is crazy relative to the underpayment amount. I researched that for New Jersey that interest on underpayment is only applied for amounts above $400, which I am below. How come I'm getting charged so much interest?

fanfare

It's been three years.

Penalties and interest in New Jersey continue to accumulate.

@juliorevka

M

mesquitebean

Was the tax due at the time of filing the original return (not the estimates underpayment amount) over $400? See if this article helps any. I found it on the NJ Division of Taxation website. I'm a fellow user--not a NJ resident and not a tax expert.

https://www.nj.gov/treasury/taxation/njit21.shtml

J

juliorevkaAuthor

So when it says "balance of tax due with your return is more than $400" it means not the underpayment penalty tax due but the overall amount of NJ tax?

T

TomD8

If you received a billing statement from the NJ Division of Taxation and you wish to dispute it, then you need to contact the State of NJ directly. The letter you received should contain instructions on how to appeal their findings. No one here can do that for you.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.