Will I get penalized for not paying estimate tax April 15

[mrpdp]

The 2020 tax return is due May 17, 2021.

[kchiles]

that isn't what I asked you. 

[cherylsreid]

The IRS has stated that the payments for 2020 are also due when the tax return is due.  There should be no penalty for paying owed taxes after April 15 as long as they are paid by the May due date for tax returns.  I am not aware that they have said anything about the estimated tax payments due quarterly.  Estimated tax payments would not be expected to be an issue as long as the total for the tax year is paid when due.  So if your estimated tax is for 2021, there should not be a penalty.  IRS.gov does not say anything about this or at least it is not found in a search.

[SteamTrain]

When I checked a week ago, he IRS was still saying that the first quarterly estimate (2021 1040ES) was still due on 15 April.

Bottom of page 4:

"No extension is provided in this notice for the payment or deposit of any other
type of Federal tax, including Federal estimated income tax payments, or for the filing of
any Federal return other than the Form 1040 series and the Form 5498 series for the
2020 taxable year."

https://www.irs.gov/pub/irs-drop/n-21-21.pdf

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As to whether you will be penalized for paying the 1st Qtr 1040-ES late....that cannot be determined until you actually file and your entire 2021 income and tax situation becomes clear.  As long as you double-pay for the 2nd qtr estimates...(i.e including the $$ to make-up what you missed), the penalty could be minimized ... but the exact details on that  that won't be known (again) until you actually prepare and file next year.

[kchiles]

it seems I am getting mixed responses.  it is very confusing.  I filed today... easy TY TT.. I also sent in the 4/15 estimate tax payment.  I guess I will soon find out. 

thanks for your help @!!!!!

[VolvoGirl]

What is confusing you?  The 4/15/2021 estimated payment has nothing to do with your 2020 tax return.  It is an estimated payment for NEXT year.  Did you think it is for paying this year's tax due?  You should have a Single 1040V voucher for the current year tax due or you entered your bank info for the IRS to pull it out of your account.

The 1040ES are estimates for next year. The 1040ES quarterly estimated tax payments DO NOT get sent to the IRS or state with your return. They are optional to pay. Turbo Tax is very conservative and doesn't want you to owe too much next year. They might have printed out if you got a one time large income this year. Like if you took a IRA or 401K distribution. You can ignore them. You might want to adjust your withholding at work so you won't owe too much next year.

[fanfare]

@kchiles 

IRS is picky about Estimated Tax.

If they calculate that you owe it and you did not pay, there will be a penalty.

It is up to you to do the calculation also and if needed, pay by April 15th, not May 17.

The first payment due date is passed now.

The second payment date comes up in two months.

[kchiles]

I totally understand my taxes - which are due May 17th and that is totally different than the estimated quarterly tax.  Until I did my taxes on TT a few days ago, I didn't realize I needed estimated quarterly taxes paid.  I am recently retired.  

My only question is, I paid the estimated quarter tax due April 15 on April 17th.  Will I get penalized?

[SteamTrain]

@kchiles 

We just don't/can't know that...maybe some penalty or interest...maybe none at all.

The way the interest/penalty on underpayment works, if your income is low enough, or regular withholding (but not estimated tax payments) is high enough to cover the expected taxes by the end of the year, then the late estimated payment is not a problem.  AND even when there is a penalty/interest, a bunch of other handwaving can get involved if you decide to not use the default calculations, and instead run thru all the "Annualized Income" calculations when you file next year .

BUT

.....if you are only paying taxes thru quarterly estimated tax payments, with absolutely no tax withholding on your income during the year, then there may be some penalty/interest for paying that first one late.

The best procedure it to have any pension provider, start doing Federal tax withholding at a level where you won't owe any more when you file next year (using the total withholding alone).  State withholding too if you are in an income-taxing state.  (And Federal withholding for SS income too, if you are getting SS income now).

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[fanfare]

the estimated tax you paid on April 17th is a second quarter Estimated Tax payment.

You missed the first  payment.

Due to the other factors involved, you can't know unless you do a trial tax return.

That also will be an approximation.