If paid my taxes via payroll deduction all year but also received a death benefit that added to my income, I now have not paid 90% is my bill due today or May 17?

I didn't pay enough taxes because I was not expecting to receive a death benefit, so I had a sum added to my income when I cashed out an IRA benefit. Since the extension it is not clear if I should pay today or can pay in May, since I no longer have paid at least 90% of my expected tax bill, but I am also not a person that has to pay estimated taxes normally

378

Level 15

Apr 15, 2021 12:51:24 PM

Taxes owed have to be paid on or before May 17, 2021 to avoid a failure to pay penalty. Filing an extension only gives you until October 15, 2021 to file a tax return, it does not give an extension for any taxes owed.

Level 2

Apr 15, 2021 12:56:22 PM

Understood thank you. I read somewhere if your taxes paid did not equal at least 90% of your tax liability they could add penalties, so I was confirming that I do not need to pay 100% of my liability by April (today), and could pay 100% by the new May deadline.

Level 15

Apr 15, 2021 1:10:22 PM

@kim-stalder21 wrote:

Understood thank you. I read somewhere if your taxes paid did not equal at least 90% of your tax liability they could add penalties, so I was confirming that I do not need to pay 100% of my liability by April (today), and could pay 100% by the new May deadline.

See this IRS Tax Topic for the Underpayment Penalty - https://www.irs.gov/taxtopics/tc306

Level 2

Apr 15, 2021 3:42:31 PM

Thank you, so I think I do have to pay, since as I said I haven't paid a total of 90% of what I am liable for. Better safe than sorry I guess.

Why sign in to the Community?

If paid my taxes via payroll deduction all year but also received a death benefit that added to my income, I now have not paid 90% is my bill due today or May 17?