The eight-time Grammy-winning singer admitted failing to file tax returns from 2005 to 2007. She faces a maximum one-year sentence on each of the three counts.
During the hearing, Hill's attorney indicated that she planned to pay back the back taxes owed. The court agreed to delay Hill's sentencing until late November to give her time to do that.
Hill admitted she didn't pay taxes on about $818,000 earned in 2005, $222,000 in 2006 and $761,000 in 2007. The money was earned by four corporations she owned.
In a statement on her Tumblr page, the 37-year-old mother of six explained that she hadn't paid taxes since she withdrew from society to guarantee the safety and well-being of herself and her family.
Hill got her start with The Fugees and began a solo career in 1998 with the critically acclaimed album "The Miseducation of Lauryn Hill."
The Associated Press contributed to this report.