TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 1

Question

Underpayment Penalty

Forum|Forum|2 years ago
March 25, 2024
2 replies
24 views

I won $50K in a casino drawing in 2024. They did not take out taxes. Do I need to pay taxes now to keep from owing a penalty for underpayment?

Level 15

Yes. By default, the IRS considers income to be evenly earned throughout the year, even if it is not. So for a ump sum of income paid between January 1 and March 31, 2024, you can either:

Make an estimated tax payment by April 15

or

Split up your estimated payment into 4 installments and pay them before April 15, June 15, September 15, and January 15 next year.

Depending on your other income, your total estimated payment is likely to be about $12,500. If you over-pay, you will get the difference back as part of your refund.

And don't forget you probably need to make state estimated payments, too.

Alumni - Intuit

Yes, you would be wise to make the estimated payments.

Open Tax Tools

On the drop-down select Tools
There will be 4 green boxes
Select Topics Search
Type the Estimated taxes paid for next year
The first screen will be Enter Your 2024 W-2 Wage Information
Answer the questions and enter amount.
You will come to Enter 2024 Other Income
Follow the interview and enter income & deductions.
You will come to Other Income
Put the $50K in here.

TurboTax will guide you through the mailing process for your 1040-ES estimated payments.

Or you can setup an account and pat directly to the IRS Direct Pay With Bank Account

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"