Estimated tax for w2 employee - need to pay?

Forum|Forum|2 years ago
February 4, 2024
2 replies
30 views

I just filed the 2023 married tax return which say that I should pay estimated tax if I expect to owe more than 1,000 in tax for 2024. But I don't owe any tax for 2023 and in fact i got a refund. Does estimated tax apply to me? Ive been using turbo tax for several years and This is first time turbo tax mentioning about estimated tax so i became concerned. Thanks

Not A Product Question

VolvoGirl

Level 15

Turbo Tax is very conservative and doesn't want you to owe next year. They might have printed out if you got a big one time increase in income. like if you took a IRA or 401K Withdrawal or had a big stock gain. They are optional to pay. They don't get sent in with your tax return so the IRS won't be expecting them. You can ignore them.

JulieS

Level 15

Yes, estimated payments are voluntary, so you don't have to make them, even if you do owe more than $1,000. You may be penalized, but it's still voluntary.

As VolvoGirl says, the suggestion may come from some extra income in your return. If you feel comfortable with the amount of tax you are having withheld, you can ignore the estimated vouchers.

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