End of Year Estimated Tax Payment

Forum|Forum|2 years ago
December 18, 2023
2 replies
34 views

In the past I typically take the penalty and pay all of my taxes in a lump sum. I was planning on doing the same this year but I have been able to get my finances more organized. I am planning on paying a lump sum of estimated taxes by the end of the year. Two things: Is this a good idea or should I just wait it out and take the penalty and pay by April? Do I use the estimated the 1040 ES payment voucher 3 or 4?

Thanks

Not A Product Question

robtm

Level 10

In my estimation it's always better to pay any tax you think you would owe during the tax year rather than waiting till you file and possibly avoid the penalty. it's preferable to pay quarterly rather than in a big sum. It's too late to use voucher 3, so you would use voucher 4. which has until Jan 15 of next year to count for payment for this year.

Mike9241

Level 15

paying sooner rather than later reduces the penalties, but unless you had no liability for the first 3 quarters you will be subject to penalties for those periods.

Mike9241