Estimated Tax Payment Penalty 2024. Taxpayers must generally pay at least 90 percent (however, see 2018 penalty relief, below) of their taxes throughout the year through withholding, estimated or additional tax. If you expect to owe more than $1,000 in federal taxes for the tax year, you may need to make estimated quarterly tax payments using form 1040.

Estimated tax payments are the taxes you pay to the irs throughout the year to account for income you’ve earned that wasn’t subject to tax withholding. Irs boosts penalty interest charges to 8%