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Level 2
posted Feb 18, 2025 7:05:43 PM

Daily interest on underpayment before or after April 15th

I am reading that IRS charges daily interest on under-payed taxed. I under-payed, have penalties calculated by Turbotax. What I am confused about is that TorboTax shoes my penalties and overall amount due the same between scenarios where I am paying today or April 14th. I thought paying earlier would result in less fees? Thank you

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1 Best answer
Expert Alumni
Feb 19, 2025 8:49:44 AM

It does not start to accrue until the day the taxes are due which this year will be April 15th.  So, starting on April 16th, if you do not pay, you would see the balance go up.

 

In general, we charge interest on underpayments starting on the due date of the amount you owe and will continue to accrue until the balance is paid in full:

2 Replies
Expert Alumni
Feb 19, 2025 8:49:44 AM

It does not start to accrue until the day the taxes are due which this year will be April 15th.  So, starting on April 16th, if you do not pay, you would see the balance go up.

 

In general, we charge interest on underpayments starting on the due date of the amount you owe and will continue to accrue until the balance is paid in full:

Level 2
Feb 19, 2025 8:53:36 AM

thank you. Makes sense.