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It just depends. Estimates are just that. The amount was based on your best guess of what your liability for 2015 would be. Perhaps your liability is less than was estimated.
Is this your estimated quarterly payment which was due Sept 15th? It is late. You can't change that now.
If you have any w-2 income, you may still have time to pay extra withholding on your next payroll check. Unlike quarterly estimates, payroll withholding is deemed to have been paid equally throughout the year.
At any rate, the penalty for underpaying is not a big penalty. It is just interest on the amount underpaid. The interest rate varies, but is quite low at this time.
No excuses but carelessness. Is there a penalty? How about if I pay them before Dec. 3
Your quarterly isn't due till Jan 15 so you aren't late. Now if you haven't paid Sept 15 payment that's another story. I would make those ASAP.
Im sure you've gotten a letter from the IRA by now showing the penalties and fees for not paying on time have you not?
Your quarterly isn't due till Jan 15 so you aren't late. Now if you haven't paid Sept 15 payment that's another story. I would make those ASAP.
Im sure you've gotten a letter from the IRA by now showing the penalties and fees for not paying on time have you not?
In my experience, it does not work that way.
Estimates are just estimates. The IRS is not going to send anything, yet alone with penalties and fees, based on one missed estimate.
There is nothing to penalize you for, as no one - even the IRS - knows exactly what the year's tax liability will end up being. That number isn't known until the taxes are done and filed.
The OP can send them now, or with the next installment due mid January. Just make sure the total of all payments is a good approximation!
In my experience, it does not work that way.
Estimates are just estimates. The IRS is not going to send anything, yet alone with penalties and fees, based on one missed estimate.
There is nothing to penalize you for, as no one - even the IRS - knows exactly what the year's tax liability will end up being. That number isn't known until the taxes are done and filed.
The OP can send them now, or with the next installment due mid January. Just make sure the total of all payments is a good approximation!
Good point didnt think about that. I am sure once your taxes are done there will be some sort of interest charged for each day your payment was late.
I am sure once your taxes are done there will be some sort of interest charged for each day your payment was late.
Nope; not for a late payment... just for underpayment.
From the IRS site:
"If you did not pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. "
Hijacking for one question-- what happens if you overestimate? Do you get the overage back easily?
You adjust on your next quarterly payment, and/or when you file your final Tax Return.
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I am sure once your taxes are done there will be some sort of interest charged for each day your payment was late.
