- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
You sold your home in 2022 (last year) or 2023 (this year)?
Assuming 2023, then your estimated payment to cover your lump sum of income was due Sept 15, 2023. You can make a payment at www.irs.gov/payments. Select "2023 estimated taxes" or "2023 from 1040-ES" as the reason from the menu. If you overpay the estimated taxes, the excess will come back to you as part of your refund.
Estimated taxes are always required by law. However, there are some circumstances where you might not be assessed a penalty for skipping the payment, such as if the tax you owe at the end of the year is less than $1000 (because of withholding or other factors). If the IRS does assess a penalty, paying as soon as you can (since it is past the due date) will minimize the amount of penalty and interest that will be added.
Lastly, the IRS assumes that all income is earned evenly over the year and that taxes should be paid evenly over the year. That means that by default, the IRS may assume that you owed 1/4 of the estimated payment in April, June, September and January, even though you only got the income in June. To avoid this problem when you prepare your tax return next spring, you can use Turbotax to figure your penalty using the "annualized income method". With this method, you split out your income and payments (withholding and other payments) by quarter and show the IRS that you paid the lump sum estimated taxes close to the correct date for the lump sum of income. (Remember that even though you are past the Sept 15 deadline, paying as soon as you can will minimize any possible additional interest or penalties for late payment.)