When a Penalty Is Applied
In some cases, you may owe a penalty when you file your
return. The penalty is imposed on each underpayment for the
number of days it remains unpaid. A penalty may be applied if
you did not pay enough estimated tax for the year or you did not
make the payments on time or in the required amount. A penalty
may apply even if you have an overpayment on your tax return.
The penalty may be waived under certain conditions. See Pub.
505 for details.
advance EIC payments made to your employee(s)) on line 12 if:
. You will have Federal income tax withheld from wages,
pensions, annuities, gambling winnings, or other income or
. You would be required to make estimated tax payments (to
avoid a penalty) even if you did not include household
employment taxes when figuring your estimated tax.
here is the link for all of the instructions and paperwork.
http://www.irs.gov/pub/irs-pdf/f1040e02.pdf
have fun....