I filed 2021 correctly; wrongly chose to pay Est Payments on full 2021 tax

Home Fairmark Forum Taxation of Investments I filed 2021 correctly; wrongly chose to pay Est Payments on full 2021 tax

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  • #77497
    TaxationRobbers
    Participant

    I wanted to make payments based on MY Estimate of what I will earn.  How can I change that now?  Do I have to wait until my Fed & IL State are fully processed?

    Will I then have to pay penalties & interest because I chose to pay the highest amount based on full 2021 Tax?  Or is there a way to change to my own Estimate, which I believe either has to be done on a form, or on Turbotax, it can be done by choosing the option to pay on one’s own Estimate?  You can’t do anything on Turbotax now from what I can see.

    #77498
    Kaye Thomas
    Moderator

    You never have to justify estimates, or a mid-year change in estimates. You could pay $20,000 the first quarter, $5,000 the next quarter, and nothing the rest of the year, without explaining the drop-off. It’s not unusual for people to change their estimates during the year based on a change in income or even a change in the amount of cash they have available to make the payments.

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