I received a notice and bill today from the New Jersey Division of Taxation for $26.11. Since my income in 2006 was higher than I expected and I didn’t adjust my state withholding from my day job (only federal), I owe for back interest that would have been collected on my neglected estimated payments throughout 2006.
This doesn’t bode well for 2007. I didn’t make estimated payments or adjust my withholding this year, either. Additionally, I have to increase my federal estimated payments in order to avoid a penalty as this year’s income is greater than I expected as well.
I have to find myself a tax accountant before it’s too late; I don’t want to pay more penalties.