ThomasM125
Expert Alumni

Get your taxes done using TurboTax

Your penalty for late payment of tax in 2023 would be based on what your tax was and how much and when you paid in taxes from withholding and/or estimated taxes for 2023.  Because your tax due in 2022 when you filed your return was under $500 and you evidently timely paid in sufficient taxes, you did not get a penalty for late payment of tax that year. TurboTax may not have recommend estimated taxes for 2023 based on what happened in 2022, but if your situation changed in 2023 you may be subject to a penalty for late payment of tax.

 

As an example, if your income went up significantly and your tax paid in did not keep up with that, you can get penalized in 2023 for late payment of tax. Also, if your income stayed the same but your tax withheld decreased significantly in 2023, you can be subject to a penalty for late payment of tax.

 

You would have to go through the estimated tax section in TurboTax where you can enter your anticipated income in the next year to determine if you need to make estimated tax payments the next year and how much they should be. You will find that section in the Other Tax Situations menu, and then Other Tax Forms. Look for the Form W-4 and estimated taxes option.

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