All Posts

The problem is, by default one-off estimated tax (ES) payments can generate penalties for earlier quarter even if you paid all the tax so I don't think simply paying in Q2 avoids penalty unless you file Form 2210 Annualized Income method (see below).   By default, the underpayment penalty will be calculated as tho income is earned evenly thru the year, and estimated tax usually needs to be paid evenly to match it (what IRS refers to as "timely"); so 25% of this Q2 tax should have been paid in Q1 and will incur an underpayment penalty for a quarter on Form 2210.  The good news is the penalty interest will only be for a few months until the Q2 payment resolves the underpayment.   Generally, keep in mind also you don't need to pay 100% of the 2025 tax, just the smaller of either - 100% of your 2024 tax (110% if AGI > 150k), or 90% of your 2025 tax; this is the 'safe harbor' amount you need to pay  'timely' during the year, either thru withholding or estimated tax, with the remaining balance due when you file.   I think you have 3 options, depending your situation and what amounts of tax/penalty are involved: 1. Accept some penalty for Q1 underpayment 2. Adopt the "Annualized Income" method to show the Q2 ES matches Q2 income and eliminate the penalty 3. Increase withholding to make your minimum "safe harbor" rather than use one-off ES.   Option #1 example, if you owed $4000 in tax and paid it all in Q2 ES, $1000 is by default due each quarter; you will have $1000 underpayment in Q1, $2000 overpayment in Q2, $1000 overpayment in Q3.  The penalty on the $1000 underpayment will be 8% for 3 months (approx) = 2% * 1000 = $20.  In this case paying full $4000 in Q2 isn't necessary either, there is nothing you an do about the Q1 penalty, but you would only need to pay $2000 in Q2, $1000 in Q3 and $1000 in Q4.   Option #2 - since you didn't know in Q1 to pay this yet... in order to not have a penalty for Q2 income paid with one-off ES in Q2 (same for unexpected income event like a Roth conversion or cap gain late in the year), you would need to adopt the "Annualized Income" method on Form 2210 when filing for 2025, and need to provide AGI/withholding per quarter (3/31, 5/31, 8/31, 12/31).  Beware this method may fix the ES penalty but could conversely penalize you if you have to increase withholding later in the year for whatever reason, as withholding is otherwise by default considered to be 'timely' (it's just a total for the year, not by quarter like ES).   Option #3 - increase withholding on the W2 income for the rest of the year to make up the additional tax due (to make the safe harbor amount - 90% of your 2025 tax due), as long as you then don't use the AI method, because with the AI method you then have to specify the timing of your withholding vs. income and you are back to having an underpayment situation.  Depends what amounts are involved, and keep in mind effects of self employment tax etc.  The risk is if the W2 income isn't steady for the rest of the year and you can't withhold enough, then you're back to an underpayment situation on ES, possibly later than Q2.   More info on ES https://www.irs.gov/faqs/estimated-tax   More info on Form 2210 https://www.irs.gov/pub/irs-pdf/i2210.pdf Not a CPA/Expert so just my 2 cents based on what you described.  Hope this helps.

You have to set the call up for yourself.  We do not arrange calls from the user forum. https://ttlc.intuit.com/turbotax-support/en-us/help-article/product-setup/connect-tax-expert-turbotax-live/L73wOZD5D_US_en_US?uid=m8zw1pbb  

Your post shows you are using the TurboTax Live Deluxe online edition. See this TurboTax support for contacting a tax expert using the Live editions - https://ttlc.intuit.com/turbotax-support/en-us/help-article/product-setup/connect-tax-expert-turbotax-live/L73wOZD5D_US_en_US?uid=malar6le

If you read @trust812's other post, you'd know that their father passed away in September of last year and his house was in a (presumably) grantor trust which is now at issue.   That house is now apparently being rented out (presumably to a third party) and the general rule is that depreciation deductions follow income related to the asset being depreciated. 

those 4 payment vouchers were for 2025 estimated tax payments not for the balance due for 2024. if you want the money applied to 2024, you'll need to contact the IRS. you should check to see if the IRS has taken the funds.   payment of balance due can be done by mailing in 2024 1040-V with payment or electing direct debit on you return or using the IRS direct pay website. 

Check to see if you used an online account with TurboTax to file a 2024 tax return.  What does it say in the account?  Does it show that a return was accepted?   Many people have multiple TT accounts and forget how to access them.  Log out of the account you are in now.     https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/many-intuit-accounts-turbotax/L9aVfKS1Z_US_en_US?uid=ll5g6zcx Account Recovery  

what kind of trust? if a grantor-type trust, there's no question that income and expenses are taxed to the grantor. even a trust labeled as an irrevocable can be a grantor -type trust if the grantor retains significant control.     for a true irrevocable trust such as what results when the grantor dies or ceases to be in control, then it depends on the provisions of the trust. some states give the trustee great discretion. for example, the trust may say the income may be distributed, so the decision is up to the trustee. on the other hand, it may say the income must be distributed. even if there is no provision for income distribution state law may give the trustee discretion as to whether income can be distributed.     finally depreciation is part of corpus, so the net cash income could be distributed but the depreciation expense remains with the trust. Agian, the trust instrument may allow distribution of depreciation or state law may leave it at the discretion of the trustee.

In another post, you indicated that the property was being rented out.   If that's so, then any net loss on the sale of that rental property to an unrelated third party would be an ordinary loss that would be distributed to the beneficiaries as such.   @trust812 

It depends.   The amount reported on line 10 of your Schedule K-1 is for an estate tax deduction but it flows onto your personal return as part of your itemized deductions, specifically Schedule A, line 16.  However when you prepare your tax return, if your standard deduction is higher than your itemized deductions, you would not receive the benefit of this tax deduction as you are already getting the higher standard deduction amount.    Please see Standard Deductions vs. Itemized Deductions for more details on the differences between each type of potential deduction.  TurboTax will select the option that provides the greatest tax benefit for your particular situation.

First, it needs to be an appraisal that reflects the market value on the date he died.   Second, you would distribute the loss regardless.  The real question is, is it a deductible loss to the beneficiaries.   Most experts on this board would say that as long as a particular beneficiary did not have any personal use of the property after he died, they can report the sale as investment property and claim a capital loss against any capital gains.  Anyone who has personal use of the property can't deduct the loss, because losses on personal property are not deductible.  

Schedule 2, Line 3 consists of additional taxes such as the alternative minimum tax, repayment of previously claimed credits, excess advance premium tax credit repayments, and other additions to tax. The 1040X instructions highlight this with a caution icon, reminding taxpayers to include any of these additions to tax from Schedule 2, Line 3 on Line 6 of their 1040X. See screenshot below of Schedule 2.   Your 1040X, Line 6, Column C, would be the total amount of tax per the new 1040. The new tax amount is calculated against your total payments. The new amount you owe (or will be refunded) will be the difference due to the changes on the 1040X.    Did your original 1040 have an amount on Line 17?