topic Re: Underpayment Penalty in Get your taxes done using TurboTax

Underpayment Penalty

MiaManu — Wed, 11 Feb 2026 05:18:32 GMT

I won $50K in a casino drawing in 2024. They did not take out taxes. Do I need to pay taxes now to keep from owing a penalty for underpayment?

Re: Underpayment Penalty

Opus 17 — Mon, 25 Mar 2024 20:41:08 GMT

Yes. By default, the IRS considers income to be evenly earned throughout the year, even if it is not. So for a ump sum of income paid between January 1 and March 31, 2024, you can either:

Make an estimated tax payment by April 15

Split up your estimated payment into 4 installments and pay them before April 15, June 15, September 15, and January 15 next year.

Depending on your other income, your total estimated payment is likely to be about $12,500. If you over-pay, you will get the difference back as part of your refund.

And don't forget you probably need to make state estimated payments, too.

Re: Underpayment Penalty

JohnB5677 — Mon, 25 Mar 2024 20:47:32 GMT

Yes, you would be wise to make the estimated payments.

Open Tax Tools

On the drop-down select Tools
There will be 4 green boxes
Select Topics Search
Type the Estimated taxes paid for next year
The first screen will be Enter Your 2024 W-2 Wage Information
Answer the questions and enter amount.
You will come to Enter 2024 Other Income
Follow the interview and enter income & deductions.
You will come to Other Income
Put the $50K in here.

TurboTax will guide you through the mailing process for your 1040-ES estimated payments.

Or you can setup an account and pat directly to the IRS Direct Pay With Bank Account