Penalty for failing to pay 2025 estimated taxes

[cbo111]

So I sold a large chunk of mutual funds in Nov 2025 to rebalance to my desired 50/50. The capital gains from this sale resulted in owing about $9,500 when I did my taxes in March. Today my wife and I each received a letter from the IRS stating we owe $120.76 for failing to pay estimated taxes. My question is do each of us owe $120.76 or did they simply send a letter to each of us and we just need to send them one payment of $120.76? We filed jointly.

 

[Jerry1]

Just $120.76.

 

[mcso]

same happened to me. Total 120.76

 

[MichaelB]

So I sold a large chunk of mutual funds in Nov 2025 to rebalance to my desired 50/50. The capital gains from this sale resulted in owing about $9,500 when I did my taxes in March. Today my wife and I each received a letter from the IRS stating we owe $120.76 for failing to pay estimated taxes. My question is do each of us owe $120.76 or did they simply send a letter to each of us and we just need to send them one payment of $120.76? We filed jointly.

You might find that by annualizing your income the penalty amount falls substantially. You could check and, if so, refile.

 

[BlueberryPie]

Always sucks to pay a penalty but as IRS penalties go it's no too bad.

I hate to pay one penny more than necessary so I tend to obsess more than I should over paying estimated taxes and I have been known to file form 2210 schedule AI to avoid the penalty, but it's almost like doing another 4 tax returns

 

[NeilDH]

I agree it has to be just one payment — I don’t know why the IRS sent two letters if you filed jointly. You could always set up your IRS account online — a bit of a hassle but so helpful long-term, as you could check what you owe and what’s been paid, make payments, even resolve disputes without waiting for slow snail mail and hoping they see it sometime.