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The state of IL sent me a letter claiming i owe $209 of late payment. However, i filed my taxes in February. Why does IL say i didnt make full estimated payment?

Filed through Turbotax; filing year 2023; late estimated payment penalty is $209, but i have no unpaid taxes.
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2 Replies
TomD8
Level 15

The state of IL sent me a letter claiming i owe $209 of late payment. However, i filed my taxes in February. Why does IL say i didnt make full estimated payment?

Do you make quarterly estimated tax payments?

 

Illinois estimated payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year.

https://tax.illinois.gov/businesses/business-income-tax-estimated-payments.html#:~:text=Estimated%20....

 

Even if your taxes were paid in full, you could still be assessed a penalty if any of your estimated payments were made late.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

The state of IL sent me a letter claiming i owe $209 of late payment. However, i filed my taxes in February. Why does IL say i didnt make full estimated payment?

Income taxes are pay as you go.  If you don't have enough withheld during the year (or make sufficient estimated payments) so that you owe more than $1000 when you file, you can be assessed a penalty for underpayment throughout the year, even if you pay in full when you file.  See this for more,

https://tax.illinois.gov/research/publications/pubs/illinois-estimated-payments-requirements-for-ind...

 

If you did not owe more than $1000, the letter may have been sent in error.  Write to the office that sent the notice with your explanation and copies of any relevant documents. 

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