Wrongly selected 1040ES

Forum|Forum|5 years ago
August 25, 2020
1 reply
5 views

I wrongly select for my next year's tax to be paid quarterly to IRS and just found out after I received a letter from the IRS on the interest owed. Is there a for me to correct this? I don't want to be making these payments.

Best answer by Critter-3

Sorry but this is still not clear to me. It clearly says: Failure to pay proper estimated tax - when you don’t pay enough taxes due for the year with your quarterly estimated tax payments, or through withholding, when required. I just talked to the IRS and they said it is based on the estimated tax, which makes it even more confusing, and she asked me to submit form 843

If you owed $1000 or more on the tax return then the IRS can penalize you if you didn't pay in enough in advance so that is why you got a bill. To avoid an underpayment penalty you need to withhold enough from places like W2 or 1099 forms OR you can make estimated payments which is why the program populated those forms you are not required to use.

Do I need to make estimated tax payments to the IRS?

PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2015  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:
    90% of the tax to be shown on your current year’s tax return, or
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

VolvoGirl

Level 15

So did you pay your 2019 current tax due? Did you think the 1040ES was for 2019 tax due?

You can ignore the 1040ES. The estimated payments are optional to pay. They are estimates for next year. Turbo Tax doesn't want you to owe next year. They might have printed out if you got a one time large income this year. Like if you took a IRA or 401K distribution or a large capital gain. They DO NOT get sent to the IRS or state with your return.