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February 10, 2020
Question

In doing this year's taxes, I see a notification that I owe $70 for "underpayment of estimated taxes", however I paid the total tax due on the 15th of April. ??

  • February 10, 2020
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2 replies

ColeenD3
February 10, 2020

On April 15 of 2019, you would have paid taxes for your 2018 return. During 2019 you were expected to pay estimated taxes due to your underpayment in 2018. If you underpaid again in 2019, that is what you are seeing.

 

Tax Topic 306

February 14, 2020

I underpaid estimated taxes in 2018 and paid the taxes due when filing my return in April 2019.  Do I report this on the 2019 tax return?

February 14, 2020

@ljgagner

 

No.

 

Any federal taxes paid for a year belong to that year.

 

And federal taxes are never deductible on the federal return.

 

What state are you in? Federal taxes are deductible in a very few states.

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Carl11_2
Employee
February 14, 2020

In doing this year's taxes,

So that would be your 2019 tax return.

I see a notification that I owe $70 for "underpayment of estimated taxes",

Which would indicate that you did not pay enough taxes each quarter of 2019, or if a W-2 employee, you did not have enough withheld from each of your paychecks by your employer.

I paid the total tax due on the 15th of April. ??

So if you did not pay your 4th quarter 2019 taxes by Jan 15th of 2020, that forth quarter payment was late.

If, at the time you file your taxes, what you owe the IRS is more than $1000 or more than 10% of your total tax liability (whichever is *HIGHER*) then an underpayment penalty will be assessed.

Take a look at your 1040. If line 19 is less than line 16 and if the difference is more than $1000 or more than 10% (whichever is HIGHER) then you underpaid your quarterly taxes during the year and a penalty is assessed. The penalty is on line 24, and like that line is labeled, it's an "estimated" penalty. The penalty stops accruing on the date the IRS receives your payment; not the date you file your tax return. So if it's more the IRS will send you a physically separate bill in the U.S. Mail for the additional amount.