Back in 2023, I knew that there was not going to be enough federal withholding from my 2023 pension payments to cover my 2023 federal tax due. This is because of large interest payments to savings accounts due to high interest rates in 2023. I had a pretty good idea of what my 2023 total tax due would be and I made a large estimated tax payment in my IRS account in October, 2023 to ensure that there would be enough to cover the 2023 tax due. This was the first time I had ever had to make an estimated tax payment.
I filed my 2023 1040 via Turbo Tax and it reflected both this 2023 estimated tax payment and the federal tax withheld from my pension distributions. I ended up with a small refund. I did not realize that Turbo Tax had prepared Form 1040ES 1, 2, 3, and 4 and that the amount for a quarterly 2024 estimated payment had been calculated on those forms based on the 2023 taxes due after withholding. There were no dates for the estimated tax payments on these 1040ES forms. However, I just discovered that Turbo Tax had also prepared an “Estimated Tax Payment Options” form with due dates for each of the 1040ES payments, April 15, 2024 being the first due date.
Now, again in 2024, I know that the federal withholding from my 2024 pension payments will not be enough to cover my 2024 federal tax due. Again, this is because of the high interests rates for the better part of 2024. I made a large estimated tax payment in June and again in early September 2024 and will make another estimated tax payment in November 2024 to insure that there will be enough to cover the 2024 tax due. Each of these payment is (and will be) much more than the figure that is on 2023 Form 1040ES 1, 2, 3, and 4. My 2024 pension federal withholding plus these 3 2024 estimated tax payments will more than cover the 2024 tax due.
Although the first 2024 estimated tax payment is considerably more than the amount on the 2024 Form 1040ES, this first payment was deposited in my IRS account on June 21, 2024 and not on or before April 15, 2024.
Will there be a penalty because I did not make the first estimated tax payment on/before April 15, 2024, even though the payment is much more than the amount that Turbo Tax calculates on the 2024 Form 1040ES?
