Missed estimated tax payment - help!

Forum|Forum|1 year ago
January 15, 2025
1 reply
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Just realized I missed the first federal estimated tax payment, which I had meant to apply the refund to. I have since paid second and third installments. What should I do for the final payment today?

Best answer by DoninGA

If there is an underpayment of estimated taxes, TurboTax will calculate that for you and enter the amount on the Form 1040 Line 38.

Go to this IRS Tax Topic for the underpayment of estimated taxes penalty - https://www.irs.gov/taxtopics/tc306

You can use the TurboTax software to annualize your income and payments using IRS Form 2210, Schedule AI

Click on Federal Taxes (Personal using Home % Business)

Click on Other Tax Situations

Under Additional Tax Payments

On Underpayment Penalties, click the start button

If there is a failure to pay or a failure to file penalty that will be calculated by the IRS after they receive your tax return and tax payment and send you a bill in the mail.

DoninGA

Employee

You can pay the 4th quarter 2024 estimated tax payments today on the IRS payment website. Today is the last day for payment of 2024 estimated taxes - https://www.irs.gov/payments

LXXVIIAuthor

So go ahead and pay the balance, which in this case would include the 1st missed payment? Is there a way to avoid penalties at this point? Should I include estimated penalties? Is there a safe harbor rule that applies?

VolvoGirl

Employee

If your return shows a penalty on line 38, You might be able to eliminate it or at least reduce it. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button