It just dawned on me yesterday that I missed the April 15 deadline for paying first quarter tax. What kind of penalty can I expec?
First time I have done that since retiring twenty years ago.
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Quarterly Income Tax Payment
- Thread starter Yah-Tah-Hey
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Actually you had until the 18th this year, but you are still late. I don't know the penalty though. I would think any tax person could tell you.
Why do you pay taxes quarterly ?
I wouldn't suspect the penalty will be all that big for being a week or two late. You can probably google it for other people's experiences. From the info below up to 5% for the 1st full month. You can file an extension immediately if it might take you a week or more to get your return together. You can file the extension on line.
A late filing penalty applies if you owe taxes and didn't file your return or extension by April 18, 2017.
This penalty also applies if you owe taxes, filed an extension, but didn't file your return by October 16, 2017.
The late filing penalty is 5% of the additional taxes owed amount for every month (or fraction thereof) your return is late, up to a maximum of 25%.
If you file more than 60 days after the due date, the minimum penalty is $135 or 100% of your unpaid tax, whichever is smaller.
Tip: The late filing penalty can be 10 times higher than the late payment penalty. If you can't pay your tax bill and didn't file an extension, at least file your return as soon as possible! You can always amend it later.
A late payment penalty applies if you didn't pay additional taxes owed by April 18, 2017, whether you filed an extension or not.
The late payment penalty is 0.5% (1/2 of 1 percent) of the additional tax owed amount for every month (or fraction thereof) the owed tax remains unpaid, up to a maximum of 25%.
For any month(s) in which both the late-payment and late-filing penalties apply, the 0.5% late-payment penalty is waived.
A late filing penalty applies if you owe taxes and didn't file your return or extension by April 18, 2017.
This penalty also applies if you owe taxes, filed an extension, but didn't file your return by October 16, 2017.
The late filing penalty is 5% of the additional taxes owed amount for every month (or fraction thereof) your return is late, up to a maximum of 25%.
If you file more than 60 days after the due date, the minimum penalty is $135 or 100% of your unpaid tax, whichever is smaller.
Tip: The late filing penalty can be 10 times higher than the late payment penalty. If you can't pay your tax bill and didn't file an extension, at least file your return as soon as possible! You can always amend it later.
A late payment penalty applies if you didn't pay additional taxes owed by April 18, 2017, whether you filed an extension or not.
The late payment penalty is 0.5% (1/2 of 1 percent) of the additional tax owed amount for every month (or fraction thereof) the owed tax remains unpaid, up to a maximum of 25%.
For any month(s) in which both the late-payment and late-filing penalties apply, the 0.5% late-payment penalty is waived.
I"m retired, have income from investments and SS so I have to make quarterly estimated income tax payments to the IRS and the state of Nebraska.
From the IRS re estimated taxes: "Generally, if you do not make at least a minimum payment for a certain payment period, you will owe a penalty. Likewise, if you miss a payment for a certain payment period altogether, then you will owe a penalty from the date the payment was due until the date the payment is made."
For estimated taxes, I believe the penalty is 5% max per month from the day after it was due from the Feds. There are exemptions and waivers based on the circumstance if you qualify...which is doubtful. My elderly mom's estimated taxes are always a bit of a struggle.
For estimated taxes, I believe the penalty is 5% max per month from the day after it was due from the Feds. There are exemptions and waivers based on the circumstance if you qualify...which is doubtful. My elderly mom's estimated taxes are always a bit of a struggle.
Send in the payment right away. The longer you wait, the higher the penalty.
Hosteenjorje,
Do you mail a Check or pay Online ? ? ?
I pay Estimated Taxes quarterly also.
I pay them online 10 days before their due.
That way if there's a problem, I have a few days to fix things.
The FEDERAL web-site is www.eftps.gov
If I were you, I would register on that site and pay them today.
Then I'd wait for the I.R.S. to contact me about a Penality.
If your not doing it already, pay the State Online also.
Come up with some type of Appointment Book so this never happens again.
That's how I keep track of Vehicle Inspection, Registration etc. etc.
Do you mail a Check or pay Online ? ? ?
I pay Estimated Taxes quarterly also.
I pay them online 10 days before their due.
That way if there's a problem, I have a few days to fix things.
The FEDERAL web-site is www.eftps.gov
If I were you, I would register on that site and pay them today.
Then I'd wait for the I.R.S. to contact me about a Penality.
If your not doing it already, pay the State Online also.
Come up with some type of Appointment Book so this never happens again.
That's how I keep track of Vehicle Inspection, Registration etc. etc.
Studying for my CPA, so this is up my alley. An extension wouldn't even help even if you did file an extension in time (April 18), basically an extension is just for filing NOT paying.
Your penalty will be 0.5% for not paying on time per month, so a full 0.5% for April.
With that being said your case is very common, when they assess the penalty write back a letter being honest that you made a mistake and forgot to file on time because of .....(ie: you were concerned that you used 5w30 instead of 10w30, lol (actually don't write that, lol)) and you apologize and 99% they'll take off the 0.5% penalty for late payment.
Your penalty will be 0.5% for not paying on time per month, so a full 0.5% for April.
With that being said your case is very common, when they assess the penalty write back a letter being honest that you made a mistake and forgot to file on time because of .....(ie: you were concerned that you used 5w30 instead of 10w30, lol (actually don't write that, lol)) and you apologize and 99% they'll take off the 0.5% penalty for late payment.
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Originally Posted By: 69GTX
I wouldn't suspect the penalty will be all that big for being a week or two late. You can probably google it for other people's experiences. From the info below up to 5% for the 1st full month. You can file an extension immediately if it might take you a week or more to get your return together. You can file the extension on line.
A late filing penalty applies if you owe taxes and didn't file your return or extension by April 18, 2017.
This penalty also applies if you owe taxes, filed an extension, but didn't file your return by October 16, 2017.
The late filing penalty is 5% of the additional taxes owed amount for every month (or fraction thereof) your return is late, up to a maximum of 25%.
If you file more than 60 days after the due date, the minimum penalty is $135 or 100% of your unpaid tax, whichever is smaller.
Tip: The late filing penalty can be 10 times higher than the late payment penalty. If you can't pay your tax bill and didn't file an extension, at least file your return as soon as possible! You can always amend it later.
A late payment penalty applies if you didn't pay additional taxes owed by April 18, 2017, whether you filed an extension or not.
The late payment penalty is 0.5% (1/2 of 1 percent) of the additional tax owed amount for every month (or fraction thereof) the owed tax remains unpaid, up to a maximum of 25%.
For any month(s) in which both the late-payment and late-filing penalties apply, the 0.5% late-payment penalty is waived.
You got the question wrong.
The OP is talking about paying quarterly taxes not filing taxes with money owed.
I wouldn't suspect the penalty will be all that big for being a week or two late. You can probably google it for other people's experiences. From the info below up to 5% for the 1st full month. You can file an extension immediately if it might take you a week or more to get your return together. You can file the extension on line.
A late filing penalty applies if you owe taxes and didn't file your return or extension by April 18, 2017.
This penalty also applies if you owe taxes, filed an extension, but didn't file your return by October 16, 2017.
The late filing penalty is 5% of the additional taxes owed amount for every month (or fraction thereof) your return is late, up to a maximum of 25%.
If you file more than 60 days after the due date, the minimum penalty is $135 or 100% of your unpaid tax, whichever is smaller.
Tip: The late filing penalty can be 10 times higher than the late payment penalty. If you can't pay your tax bill and didn't file an extension, at least file your return as soon as possible! You can always amend it later.
A late payment penalty applies if you didn't pay additional taxes owed by April 18, 2017, whether you filed an extension or not.
The late payment penalty is 0.5% (1/2 of 1 percent) of the additional tax owed amount for every month (or fraction thereof) the owed tax remains unpaid, up to a maximum of 25%.
For any month(s) in which both the late-payment and late-filing penalties apply, the 0.5% late-payment penalty is waived.
You got the question wrong.
The OP is talking about paying quarterly taxes not filing taxes with money owed.
The 0.5%/month is the penalty for not paying for TY2016. That's not your case. Your case is an underpayment of estimated taxes for TY2017. The underpayment penalty is based on the variable interest rate which the IRS publishes quarterly. It's currently 4% annualized.
Form 2210 calculates the penalty... but tax software will do this for you when you file in 2018.
In a nutshell, if you pay now, your penalty will be like $0.75 per thousand owed, since you're only overdue by a week. (4% divided by 52)
Form 2210 calculates the penalty... but tax software will do this for you when you file in 2018.
In a nutshell, if you pay now, your penalty will be like $0.75 per thousand owed, since you're only overdue by a week. (4% divided by 52)
You know that when you w/D money from investments (mutual funds, annuities etc)pensions and SS you can have taxes withheld, probably not state but certainly federal. That would alleviate one of the quarterly filings. However, many people wish more control of the situation and use quarterly payments.
The federal government ONLY cares really if you owe at end of year. I am not always timely with quarterly payments BUT overpay by about $2k(refund). They have never assessed a fee.
just go online and pay it on the IRS website,
This is what I paid few years back.
IRS = 5% interest and dunno know about penalty,
I had to pay a nominal amount like $50 during my divorce cuz I was nearly 100k in the hole. My penalties and interest for IRS was worth not raking up interest on credit card or taking loan at bank.
State of MI = 20% penalty, I missed this one and had to pay mucho mulas to MI, not doing that again.
This is what I paid few years back.
IRS = 5% interest and dunno know about penalty,
I had to pay a nominal amount like $50 during my divorce cuz I was nearly 100k in the hole. My penalties and interest for IRS was worth not raking up interest on credit card or taking loan at bank.
State of MI = 20% penalty, I missed this one and had to pay mucho mulas to MI, not doing that again.
Originally Posted By: larryinnewyork
Hosteenjorje,
Do you mail a Check or pay Online ? ? ?
I pay Estimated Taxes quarterly also.
I pay them online 10 days before their due.
That way if there's a problem, I have a few days to fix things.
The FEDERAL web-site is www.eftps.gov
If I were you, I would register on that site and pay them today. Thanks larryinnewyork, I'll do that.
Then I'd wait for the I.R.S. to contact me about a Penality.
If your not doing it already, pay the State Online also.
Come up with some type of Appointment Book so this never happens again.
That's how I keep track of Vehicle Inspection, Registration etc. etc.
Hosteenjorje,
Do you mail a Check or pay Online ? ? ?
I pay Estimated Taxes quarterly also.
I pay them online 10 days before their due.
That way if there's a problem, I have a few days to fix things.
The FEDERAL web-site is www.eftps.gov
If I were you, I would register on that site and pay them today. Thanks larryinnewyork, I'll do that.
Then I'd wait for the I.R.S. to contact me about a Penality.
If your not doing it already, pay the State Online also.
Come up with some type of Appointment Book so this never happens again.
That's how I keep track of Vehicle Inspection, Registration etc. etc.
Decided I don't have to pay quarterly income tax as my federal tax will be less than a thousand dollars and Nebraska tax will be less that five hundred dollars. No sense loaning either entity $$$.Thanks to those who responded. Another senior moment.
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