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    itsfighter's Avatar
    itsfighter Posts: 21, Reputation: 1
    New Member
     
    #1

    Dec 21, 2020, 06:41 PM
    Under withholding from Payroll - Estimated tax payment
    Hi All,

    I did a tax calculation using a few online tax calculators (Taxact, hrblock, TurboTax) to determine my tax vs withholding based on my last paystub for 2020. Looks like I owe around $600 for federal tax. I also have a few 1099int which will account for an additional $200-300 in taxes. Usually, I get a refund from federal taxes which will account for my additional 1009int but this year looks like I already owe even before accounting for interest income.

    Is there any way I can make a one time estimated payment for $800 to make up for the under-withheld amount? Please advise.

    Thanks in advance and appreciate your help
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,815, Reputation: 846
    Senior Tax Expert
     
    #2

    Dec 21, 2020, 08:51 PM
    Purely from a money management point of view, you do NOT want a refund, because you are getting back your own money.

    If you end up owing about $700, then start saving the money and pay it when you file, because THAT is the smart way to deal with your taxes.

    ATE
    itsfighter's Avatar
    itsfighter Posts: 21, Reputation: 1
    New Member
     
    #3

    Dec 21, 2020, 10:50 PM
    Thanks for your response. I am more worried about paying penalty and interest. I might be closer to 800-900 in underpayment including my 1099ints. Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,815, Reputation: 846
    Senior Tax Expert
     
    #4

    Dec 22, 2020, 01:36 PM
    Generally speaking, you can pay up to $1,000 when filing your taxes without paying any penalties or interest.

    It can even be higher under certain circumstances, but the IRS has used the $1,000 cutoff for settling your tax bill for decades.

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