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Estimated tax payments / penalties / safe harbor

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  • Estimated tax payments / penalties / safe harbor

    My father has always prepared his own tax returns. As a retiree, he never made estimated payments but just paid the tax upon filing including the penalty. He recently passed away so now I’m helping my mother with these financial matters. I have both their 2018 tax return and a good estimate of their 2019 income, so if I have her make a full payment of her likely owed 2019 taxes by the 4th Q estimated tax due date, would this constitute a safe harbor? Specifically, is there a penalty for not making any payments for the first 3 quarters but catching up in Quarter 4?

  • #2
    Spiritrider posted this on another thread:

    To amplify what @jfoxcpacfp said about catching up on estimated tax payments if you haven’t been making them. You should make an estimated tax payment ASAP for your SE taxes and federal income tax through 8/31. Even though you are late for the 6/15 and 9/15 payment dates, the penalty is a daily interest rate. The sooner you make up for lost time the better. Then make your 1/15 estimated tax payment on schedule.

    It was the 1099 Anxiety thread, check it out.



    • #3
      @SLC OB - thanks for the info. I had an earlier post on that thread, but hadn’t returned to it since. It’s nice to know Johanna and Spiritrider are answering my questions before I even ask them!


      • #4
        The penalty really isn't that much.  I grossly underpay my quarterly payments.


        • #5
          I am so sorry for the loss of your father and hope you have many wonderful memories to sustain and comfort you. How fortunate your mother is to have you there for her.
          Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087