Can I skip quarterly tax payments and just make one lump sum payment?

[fishwishin]

I had my taxes done yesterday and it was a pretty rough appointment. I would rather only be angry one time this year and send all of my 2023 estimated taxes in one lump sum rather than make the quarterly estimated payments. Does anybody know if this is allowable?

Thank you

 

[martyd]

I tried that years ago, without asking, I had to pay a penalty but no interest.

I would like to think that has changed by now, but, they want your money no matter how it affects you, financially or convenience.

 

[HOUSTON RICK]

If you pay it all on the first due date, the IRS will not care, but you lose the time value of the last three payments.

 

[rkwood]

Houston Rick is correct.

 

[rockquarry]

For the last forty years or so, I've found any tax-related question, like the one posed here, is best answered by a CPA that does tax work.

 

[Onomea]

FWIW, I thought paying estimated taxes was optional. This is payment in advance. (If not, why are they "estimated.") The concept of paying by the quarter for the current year, as I understand it, is to make the bitter pill easier to swallow when it comes due as a whopping total on 15 April of the next.

I did that a couple of times, but I found in my case I preferred to just write one check when due.

It seems to me that at least some of you are talking about paying taxes that are already due from a previous year(s) spread out over time which explains the late penalties due. I've done that, too, when I got arrears due to a divorce.

 

[Onomea]

For the last forty years or so, I've found any tax-related question, like the one posed here, is best answered by a CPA that does tax work.

That would be Houston Rick.

 

[PALADIN85020]

I've made a lump sum payment for the last several years instead of paying the first quarterly sum. It's worth it to me to not have to remember the payment dates, missing one and paying a penalty. As I grow older, I want things to be simple, not complicated and complex. I hate dealing with taxes, and want them to be done with expeditiously, not constantly and laboriously.

John

 

[fishwishin]

If you pay it all on the first due date, the IRS will not care, but you lose the time value of the last three payments.

I was thinking the same thing, if I pay it on/before the first due date I would be good. What do you mean of the value of time? Does that mean the convenience of taking my time to pay my liability?

Thank you

 

[Onomea]

I would rather only be angry one time this year and send all of my 2023 estimated taxes in one lump sum rather than make the quarterly estimated payments. Does anybody know if this is allowable?

Since your 2023 taxes are not due until 15 April 2024, non-expert, but experienced taxpayer, me says, "Yes!"

 

[johngalt]

If you pay it all on the first due date, the IRS will not care, but you lose the time value of the last three payments.

I used to do this. You can pay the entire estimate in Q1, but not Q4.

 

[LVSteve]

Since your 2023 taxes are not due until 15 April 2024, non-expert, but experienced taxpayer, me says, "Yes!"

IRS does not like it if you wait to the end of the year and the amount you have to pay is greater than a certain percentage of your income. If the amount gets too big they slap on a penalty for denying the treasury the use of that money earlier in the year. Been there, done that.

 

[Onomea]

LvSteve, thanks. I stand corrected, fellas. Yes, but Q1 it is.

 

[ladder13]

We withhold $0 from our pensions and SS (minus the Part B), and pay quarterly.
The math major does the work.

 

[arjay]

I found it easier/less stressful to be a bit ahead each quarter and pay less for the final quarter since my cash flow tended to be lousy in late winter

 

[NYlakesider]

I send in my quarterly when required. Being I do stocks the number owed could be different each quarter. For that reason I run all sells past my accountant and she tells me what to send.

 

[HOUSTON RICK]

Yes, you can pay everything on the first estimated quarterly due date during the year. Q1 for calendar tax payers. Not when the return is due after the year. In addition to losing the time value of your money, you need to predict the future if your income is uncertain.

 

[Tom K]

It's my uneducated understanding that you owe taxes on any income that you make, that instant. Hence, withholding from your regular paychecks and such. It is only due to the magnanimous grace of the IRS that you are allowed to do quarterly payments in the first place.

Also they spot you until April 15th of the following year to make up any minor shortfall. If you get a refund, that just means that you overpaid and that you're a chump for letting the IRS use your money for 3-1/2 months.

 

[Tom S.]

If you do withholdings from your sources of income you do not need to file quarterly returns. The trick is knowing how much to withhold. If your income is stable, then it's easy to base withholdings from last year's returns. I have taxes withheld on some of my pensions and on my SS.

 

[pawngal]

If you do withholdings from your sources of income you do not need to file quarterly returns. The trick is knowing how much to withhold. If your income is stable, then it's easy to base withholdings from last year's returns. I have taxes withheld on some of my pensions and on my SS.

Similar, I have taxes withheld on my IRA disbursements.