Form 1040 line 79 is for "estimated tax penalty", but my understanding is that this is for 'penalty for not paying estimated tax', not 'the estimated amount for all tax penalties'. If this is the case, where on Form 1040 is information for 'the estimated amount for all tax penalties' included? Is it included on line 78 without being listed separately? Or is it not listed at all on the form, but just paid along with the tax owed?

I've looked at IRS Publication 17, but have not found information about this. Various online sources go into detail about how to calculate the penalty, but not how to list it or pay it.

up vote 1 down vote accepted

You can read the instructions to form 1040 on this. They're quite detailed. Specifically to your question:

If you include interest or penalties (other than the estimated tax penalty) with your payment, identify and enter the amount in the bottom margin of Form 1040, page 2. Do not include interest or penalties (other than the estimated tax penalty) in the amount you owe on line 78.

However, you can leave it empty and let the IRS calculate it for you and send you the bill. In some cases - they won't.

  • 1
    I've always wondered, how much roughly in the US is the "penalty, if you choose to just not pay the estimated tax each quarter and pay it all at the end". i have heard, many small businesses just go ahead and do that and simply pay the penalty at the end, rather than bothering to pay the quarterly estimates? I mean, is it a very small amount, or "2 percent" or ?? – Fattie Jun 29 '16 at 14:02
  • @JoeBlow: That might be good to ask as a separate question. – BrenBarn Jun 30 '16 at 6:23

Your Answer

 
discard

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Not the answer you're looking for? Browse other questions tagged or ask your own question.