Federal Underpayment Question

[jayta22]

I receive a bonus every March each year. Due to personal circumstances, I need to defer 30% of my income tax payments until my bonus arrives in March, at which point I plan to pay the total tax bill. Would I incur an underpayment penalty for this situation? If I make my payment in March using https://www.irs.gov/payments, would I be able to avoid the underpayment penalty when filing my taxes with TurboTax?

Let's say I plan to owe the IRS 6k then pay them off by march when I get my bonus. 

Thanks!

[JohnB5677]

If I understand correctly:

• You get a bonus every March.
• You got one in March of 2024 with 30% taxes taken out.
• That income and taxes will be posted to the current tax year (2024)
• (The bonus and taxes withheld in the 2025 bonus will be posted next year)
• You will prepare your taxes for 2024 to determine if you get a refund or you owe money.
• If you owe it MAY trigger a penalty
• You can use the IRS website for the 2024 taxes to make a payment, but it will not avoid a potential 2024 penalty.

The underpayment penalty will be assessed if any of these apply:

• "If you don’t pay enough tax through withholding and estimated tax payments, you may have to pay a penalty."
• "You also may have to pay a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return."

To avoid the under payment penalty:

• The amount you owe is less than $1,000, after subtracting withholding and refundable credits.
• You paid 90% of the tax that you owed for the current year.
• You paid 100% of the previous year tax, (110% for higher incomes).
• If your previous year's adjusted gross income was more than $150,000 you will have to pay in 110% of your previous year's taxes to satisfy the "safe-harbor" requirement.

"Typically, underpayment penalties are 5% of the underpaid amount, and they're capped at 25%. 

Underpaid taxes also accrue interest at a rate that the IRS sets annually."

To avoid this situation it is recommended that you adjust your W-4 with your employer or pay estimated taxes.

Underpayment of Estimated Tax by Individuals Penalty