I received $15,000 from a sale of land in July. I had planned to make a one time payment with a 3rd quarter voucher. I missed the deadline in September for the 3rd quarterly tax payment. Is it better to pay now (late) or when the 4th payment is due (at the end of the year)? Also, I did not make a 1st or 2nd quarter payment because I didn't know I would be selling the land. Thanks for your help!
2007-10-09 15:29:24 · 3 answers · asked by thamamasboy 1 in Business & Finance ➔ Taxes ➔ United States
If you are having tax witheld from a paycheck, pension check, etc, you could increase the amount of witholding so that you would have enough in to cover your total tax liability at year end.
This will avoid an underpayment penalty. It is a nice legal loophole.
2007-10-10 08:30:28 · answer #1 · answered by r_kav 4 · 0⤊ 0⤋
Technically, you should send it in now, late. But if you send it in sometime between now and Jan 15 with the 4th quarter voucher, you should be OK.
2007-10-09 18:55:25 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Yes it is better to pay now. If enough is in, IRS computers may skip computing any under payment penalty.
2007-10-09 15:34:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋