If you owe taxes, does it matter when you pay between Jan 1 and April 15? Trying to minimize penalties
I just realized I'm gonna owe a pretty hefty amount in taxes for 2024 due to some stupid calculation errors on my part. So now I'm looking at owing the actual tax amount plus some kind of penalty (and probably interest too I'm guessing). Here's what I'm wondering - does it actually make any difference if I file and pay like right now in early February versus waiting until the deadline on April 15th? Like, will I save anything on the interest or penalties if I just bite the bullet and file earlier rather than waiting til the last minute? I'm trying to figure out if there's any financial benefit to filing sooner or if it doesn't matter as long as I get everything in by April 15th. Really kicking myself for the miscalculation... looks like I'll be owing around $5,800 more than I expected.
20 comments
Join the conversation
Liam McGuire
The timing absolutely matters when you owe taxes! When you owe, interest compounds daily starting from the original due date (April 15th) until you pay. The penalty for failure to pay is 0.5% of the unpaid amount per month (capped at 25% total). But here's the important distinction: if you're filing BEFORE April 15th, there's no advantage to filing early UNLESS you're also paying early. Filing without paying doesn't help. However, if you can pay even a portion early, you'll reduce the interest and penalties on that amount. If you're able to pay anything now, do it! You don't need to wait until you file. You can make an estimated payment through the IRS Direct Pay system, and then file your full return later. Every dollar you pay early saves you from accruing additional interest and penalties on that amount.
0 coins
Amara Eze
•But wait - the OP is talking about filing in February for the 2024 tax year that's due April 2025, right? Since we're still in the current tax year, wouldn't there be no penalties yet because the due date hasn't passed? Or am I misunderstanding something?
0 coins
Liam McGuire
•You're right to question this - I think there might be some confusion in the original post. If they're referring to the 2024 tax year (which would be filed in 2025), then there aren't any penalties to worry about yet since April 15, 2025, is the deadline. If they're actually talking about the 2023 tax year (which is due April 15, 2024), then my advice applies. In that case, filing and paying earlier would indeed save on interest and penalties that would start accruing after April 15, 2024.
0 coins
Giovanni Ricci
I had a similar situation last year and found taxr.ai super helpful for figuring out my penalty situation. I was stressing about how much extra I'd owe beyond my tax bill, and their system analyzed my payment timing and calculated the actual penalties. Check them out at https://taxr.ai - they have this feature that shows you exactly how your penalties change based on when you pay, which helped me decide if I should pay immediately or wait.
0 coins
NeonNomad
•How accurate is their penalty calculator? I'm in a similar boat where I'll owe around $8k for 2023 and I'm trying to decide if I should empty my savings now or wait until April.
0 coins
Fatima Al-Hashemi
•Does taxr.ai actually connect to your tax accounts or is it just a general calculator? I'm worried about giving access to my sensitive tax info to random websites.
0 coins
Giovanni Ricci
•Their penalty calculator was spot-on for me - it matched exactly what the IRS ended up charging. They use the official IRS interest rates and penalty formulas, so the math is solid. Regarding your account question, they don't connect to your IRS accounts. You just input your numbers manually, and it calculates everything for you. No need to provide sensitive login credentials or anything like that. It's more like a smart calculator with tax expertise built in.
0 coins
NeonNomad
Just wanted to update after using taxr.ai that the previous commenter recommended. It was actually pretty eye-opening - found out I'd save about $240 in penalties and interest by paying now instead of waiting until April. The breakdown showed exactly how the daily interest compounds, which made the decision way easier. I went ahead and made the payment this morning through IRS Direct Pay. Definitely recommend checking it out if you're trying to decide when to pay.
0 coins
Dylan Mitchell
If you're trying to reach the IRS to discuss payment options, good luck getting through their phone lines! I spent hours on hold before discovering Claimyr (https://claimyr.com). They got me connected to an actual IRS agent in about 15 minutes who helped set up a payment plan for my unexpected tax bill. You can see how it works here: https://youtu.be/_kiP6q8DX5c. Saved me so much stress when I realized I couldn't pay my full balance by April 15.
0 coins
Sofia Martinez
•Wait, so they just call the IRS for you? How is that even legal? And isn't that something I could just do myself if I wait on hold long enough?
0 coins
Dmitry Volkov
•Sounds scammy tbh. They probably just put you on hold themselves and then charge you for the privilege. I've never heard of anyone actually getting through to the IRS quickly.
0 coins
Dylan Mitchell
•They don't just call for you - they use a system that navigates the IRS phone tree and holds your place in line. When they're about to connect with an agent, you get a call back. It's completely legal because you're still the one talking directly to the IRS. Yes, you could do it yourself if you have hours to wait on hold. The whole point is saving that time. During tax season, hold times can be 2+ hours, and many people get disconnected after waiting. It's not about doing something you couldn't do - it's about not wasting your day listening to hold music.
0 coins
Dmitry Volkov
I need to publicly eat my words about Claimyr. After my skeptical comment, I decided to try it anyway because I was desperate to set up a payment plan. Not only did it work exactly as advertised, but the IRS agent I spoke with told me I qualified for a first-time penalty abatement that I didn't even know about! Saved me around $400 in penalties. The agent said they probably wouldn't have suggested it if I hadn't called. So yeah...it's legit and I'm kind of shocked.
0 coins
Ava Thompson
Something nobody mentioned yet - if you think you'll owe for 2024 (filing in 2025), you might want to start making estimated quarterly tax payments NOW to avoid being in this same situation next year. The next estimated payment deadline is April 15th, 2024 (for Q1 2024). Making these payments throughout the year helps avoid the underpayment penalty altogether.
0 coins
Mei Zhang
•This is super helpful, thank you! So those quarterly payments - are they just a quarter of what I think I'll owe for the year? And do I need to fill out any special forms, or just send money to the IRS with my info?
0 coins
Ava Thompson
•You'll want to use Form 1040-ES for your quarterly estimated payments. You can calculate what you expect to owe for the full year and divide by four, but there are safe harbor rules too. Generally, if you pay 100% of last year's tax liability (or 110% if your AGI was over $150,000), you won't face penalties even if you end up owing more. The payments don't have to be exactly equal if your income fluctuates. What matters is that you're making a good faith effort to pay throughout the year. You can pay online through IRS Direct Pay or mail a check with the payment vouchers from Form 1040-ES.
0 coins
CyberSiren
I'm confused about the original post... are you talking about taxes for 2023 (filing now in 2024) or 2024 (filing in 2025)? If it's 2024 taxes, you don't need to worry yet since those aren't due until next year.
0 coins
Mei Zhang
•Sorry for the confusion! I meant 2023 taxes that I'll be filing now in 2024. I just realized I wrote the wrong year in my post. So yeah, I'm trying to figure out if I should pay now in February or wait until April for the taxes due for 2023. Thanks for catching that!
0 coins
Miguel Alvarez
•This is exactly why tax questions on Reddit get so confusing lol. People always mix up the tax year vs filing year. Pro tip: always specify "2023 taxes (filing in 2024)" to avoid this confusion!
0 coins
Geoff Richards
Based on your clarification that you're talking about 2023 taxes, yes - paying earlier will definitely save you money! The IRS charges interest that compounds daily from April 15th, 2024 until you pay in full, plus a 0.5% monthly penalty on unpaid amounts. For your $5,800 balance, paying now versus waiting until April 15th could save you roughly $50-75 in interest and penalties (depending on current IRS interest rates). It might not sound like a lot, but every dollar counts when you're already facing an unexpected tax bill. You can pay immediately through IRS Direct Pay without even filing your return first. Just make sure to note it's for your 2023 tax year when you make the payment. Then when you do file your return, the payment will already be credited to your account.
0 coins