I owe estimated tax. What should I do?
If you did not owe any tax last year, you do not need to make estimated tax payments before April 15.
If you think you may owe tax this year, please submit your documents as early as possible so that we can prepare your return well before April 15 (your tax due will begin accruing interest).
If you owed U.S. federal tax last year and did not anticipate tax withholding through an employer:
You were supposed to make quarterly payments on your estimated taxes for the coming year. These quarterly payments assume a 10% increase in income.
If you failed to make estimated payments or if you paid too little:
You can eliminate the biggest part of the estimated payment penalties by filing your tax return early (filing a preliminary draft, based on the highest amount of tax you may owe) and by paying the full amount no later than January 31. You can later file an amended return with the exact numbers and receive a refund if you’ve overpaid.
If you file by Jan 31:
You will still owe a penalty for failure to pay your estimated tax payments in a timely manner, but it will be relatively small (approximately $20 for every $1,000 which was not paid on time).