How can I pay on this tax return to remedy an underpayment of 982.04 from my quarterly tax I paid in Jan 2019. I was put in a higher tax bracket then I thought.

[CherylW · Accepted solution]

If you owe with your tax return,you can pay when you file your return.

You can pay your balance due to the IRS with a check or money order or you can pay directly through the IRS Website here: https://www.irs.gov/payments

[jbond45]

That is not the question I asked.  I did not find it helpful and would like to talk to someone who would like to help me before I file.  I do not wish to get penalized for underpayment of quarterly taxes.  I do not know how or where to pay it in this current tax return if I am able.

[CherylW]

Was your payment of 982.04 the last payment of 2018, or were you making a payment for 2019?

[CherylW]

So, if I am understanding it correctly, you didn't pay enough in quarterly estimates and now have an underpayment.  If you owe less than $1,000, there will not be an underpayment penalty unless, you did not make quarterly payments as required, but instead made one lump sum payment in Jan. 2019.  If this doesn't answer your question, please post back to this thread.

[jbond45]

I paid on Jan 15th my 2018 quarterly taxes from sept 2018 to dec 2018.  I thought i was in the 14% percentile. When I got my w2 from one of my jobs, I made more than I thought and was in the 22% bracket.  I had already paid Jan 2019 quarterly taxes for 14% I paid 1800$.  I recalculated what I would have had to pay for Jan 2019 quarterly taxes at 22% then I subtracted that amount and came up with 982.04 that I owed for Jan 2019 taxes at 22% tax bracket.  I am the one who caught the underpayment.  Turbo tax has not caught it.  I was wondering if I could somehow put what I owe on this tax return or can I just make an online payment to the IRs for what I still owe.

[VolvoGirl]

Huh?  That is reconciled on your tax return.  You either have a refund or tax due.  You can’t go back and pay the difference now.  The quarterly payments you made are not actual taxes.  They are estimates towards your tax return now.  Like withholding would be from your paychecks.

[jbond45]

Ok. That was what I was wondering, if I owed it would reflect in my taxes I was doing now, right? Ok I was just worried if I didn't pay now then I would get months and months of penalty from underpayment.  This is the first job I've had with 1099, I hate it and think quarterly estimated taxes are confusing.  I was afraid the IRS was going to come after me.

[VolvoGirl]

If you have a refund then the quarterly payments were enough to cover the tax due on your income.  You don’t need to pay Estimates on W2 income.  The quarterly estimates are to cover the 1090Misc self employment income.  Your W2 income has withholding taken out for you.

And you only need to figure the estimates on your Net Profit each quarter after expenses.  So if you sent in a percentage of the gross income you received that is probably way too much and you can get a refund.  You need to cover the self employment tax.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 27.   The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 4 line 57 which goes to 1040 line 14.  The SE tax is in addition to your regular income tax on the net profit.

For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
 
- 2. You expect your withholding and credits to be less than the smaller of:
    90% of the tax to be shown on your current year’s tax return, or
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).

[jbond45]

Ok that clears it up. I was adding both jobs the 1099 and w2 for my total income. I thought I was not taking out enough. I forgot my w 2 already paid taxes. Thank you. Have a good day

[CherylW]

thanks VolvoGirl!

[VolvoGirl]

Whew!  Glad we got that straightened out for you.  So I assume you ended up with a refund?  That’s always good.