Anticipating an underpayment, I sent the IRS $4000 payment in October 2025. How do I get credit for that on my 2024 return?

[JohnB5677]

To post estimated taxes

Open TurboTax

1. Under Federal
2. Select Deductions and Credits
3. Scroll down the list to Estimates and Other Taxes Paid
4. Select Estimated Tax Payments from the drop down
5. On the new drop down choose Federal estimated taxes for 2024 (Form 1040-ES)
6. Did you pay federal estimated taxes for 2024? - YES

Where do I enter my estimated tax payments?

The underpayment penalty will be assessed if any of these apply:

• "If you don’t pay enough tax through withholding and estimated tax payments, you may have to pay a penalty."
• "You also may have to pay a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return."

To avoid the under payment penalty:

• The amount you owe is less than $1,000, after subtracting withholding and refundable credits.
• You paid 90% of the tax that you owed for the current year.
• You paid 100% of the previous year tax, (110% for higher incomes).
• If your previous year's adjusted gross income was more than $150,000 you will have to pay in 110% of your previous year's taxes to satisfy the "safe-harbor" requirement.

"Typically, underpayment penalties are 5% of the underpaid amount, and they're capped at 25%. 

Underpaid taxes also accrue interest at a rate that the IRS sets annually."

To avoid this situation it is recommended that you adjust your W-4 with your employer or pay estimated taxes.

Underpayment of Estimated Tax by Individuals Penalty