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tow_mih
Returning Member

I received winnings that they did not tax in 2016. I had to pay a penalty because I owed more than $1000 to IRS. How can this be avoided if it occurs again in the future?

Normally, I would not have this situation so do not want to do the estimated tax at the $400+quarterly that the system printed when I did my taxes.  The gambling winning was what took me over the $1000 limit to have a penalty applied not work income.  Is there a way for me to submit money directly to IRS if a gambling win happens in future?

1 Reply
Carl
Level 15

I received winnings that they did not tax in 2016. I had to pay a penalty because I owed more than $1000 to IRS. How can this be avoided if it occurs again in the future?

You can throw away the 1040-ES forms if you want. There is no requirement to file them. It's just that if you underpay your taxes during the year, the IRS has a field day as they assess penalties and fines for that.

To avoid that in the future, the next time you receive a substantial amount of income on which taxes are not withheld, you'll want to send the IRS at least 25% of that income ASAP. YOu can do that at any time you wish on line at http://www.irs.gov/directpay

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