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Personal Finance (Not Investing) • Taxes Owed, Likely not "Safe Harbor"

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two completely separate tax accounts, but similar underpayment issues.

/1/ Was supposed to be making $300 x 4 quarterly payments for a Trust account. Forget to make #2,3, &4. I've missed Jan 15th by a week. do I pay $900 now, and figure IRS will be OK? Or do I figure the penalty on the $1000 owed is so small, who cares?

/2/ Main Tax fund account (MFJ). Dont normally make quarterly payments. Paid ~ $44k in federal tax last year. Looks like ~ $42k has been withheld. Thanks to a good year with unearned income, my total tax liability will be (guessing) $45k-$50k. Shall I create a 1040-ES, and send a check for $5k? I suspect some/much of that excess unearned income will be from Q4 capital gains distributions. since it occurred in Q4, am I exempt from the need to pay those taxes early? Can turbotax (easily) account for that? Or again, or the actual penalties small enough I shouldnt care?

Statistics: Posted by AS7911 — Sat Jan 20, 2024 3:59 pm — Replies 7 — Views 454



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