My wife and I are both retired and don't work. Because of some good interest earned on CDs, we ended up owing Feds over a $1,000 which I plan on paying in full and on time. This has never happened before. The penalty figured to be only $20.00. No big deal!
So now Turbotax says I need to pay $300 each quarter. Next year I don't believe we will have the interest income we did this year that drove us over the $1,000.
What if I don't pay the quarterly $300?
One year the State of Kansas wanted quarterly payments (I owed more than $500) and I just ignored them and they just add a penalty the following year because I once again owed more than $500. No big deal small amount penalty and better than pain of paying each quarter. The penalty was so small I didn't care, it was worth it not to deal with payments every quarter.
If the Federal IRS does the same, I just as soon pay $20 or so a year as dealing with sending payments each quarter. My question is if I skip the 1040-ES quarterly payments and still owe over a $1,000 next year, I just soon pay that small penalty as deal with quarterly payments. But I don't know if the Feds deal with it like that or they get real angry for not sending in the quarter 1040-ES and charge some additional penalties?
