Amount on 1040 Refund (Box 34) doesn't match Form 1040-ES

[drmobley]

Just got done going through turbotax. When finishing up everything, the "Federal Refund" in the upper lefthand box showed that we would be refunded $125. This is also reflected in the 1040 in boxes 34 and 35a (both clearly read 125). There is nothing in box 37 ("Amount you owe").

What's weird is when I went to submit the return  I opened the final document to save/print and noticed there are 4 2025 Form 1040-ES Payment Vouchers for $360 each (meaning I would have to make four $360 payments every quarter this year). I have no idea where this is coming from. I searched the tax return document for "360" and "1440" (360x4), and no where in the return do these numbers show up.

Not really sure what to make of this. $125 is not a substantial amount for us, but I definitely don't want to be on the hook for $1440 (plus knowing my luck I would ignore it until the IRS bugs me in the mail). 

[PatriciaV]

Forms 1040-ES are used to pay estimated taxes for next year and are not related to your tax refund. TurboTax calculates the amounts on these forms based on your tax situation for the current year, projected for the coming tax year. Using those forms is totally optional. If you believe you will pay enough taxes through withholding on your income, there is no reason to pay estimated taxes.

If you want to see how these amounts were calculated, look for the Estimated Taxes and Form W-4 Worksheet, a TurboTax form included in your complete return (not an IRS form). Follow the instructions here and check the box for all forms and worksheets: How do I get a PDF of my return?

[baldietax]

To avoid underpayment penalty in 2025 you will need to have paid timely thru the year thru either withholding or quarterly estimated tax, the smaller of either - 100% of your 2024 tax (110% if AGI > 150k), or 90% of your 2025 tax (this is the 'safe harbor' amount).  This FAQ is helpful https://www.irs.gov/faqs/estimated-tax

Generally, TT will generate ES vouchers by default using "100/110% of 2024 tax" and assumes your 2025 withholding is the same as 2024 unless you provide a different 2025 estimate.  The difference between these is the total ES due, and it gets divided into 4 as underpayment is calculated on a quarterly basis.  

So that is probably where the $1440 is coming from, tho if you don't normally pay ES and had a refund in 2024 I am not sure why offhand, it depends on your situation; one scenario if your AGI > 150k then it would calculate ES based on 110% of your 2024 tax which will be too high (unless your tax liability increases significantly in 2025 e.g. Roth conversion).

As @PatriciaV indicates you should be able find the worksheet showing the calculation for these vouchers.  Also if on desktop you can go Forms mode and find the "Est Tax Options" worksheet there.

If you go thru Other Tax Situations / Form W4 and Estimated Taxes section you can provide information for 2025 to see if it reduces or eliminates the need for estimated tax.  If you are comfortable with your withholding and have a stable tax situation you can also ignore the estimated tax vouchers, but before you do it's worth understanding where these numbers are coming from (you won't get reminders from the IRS about it, you'll simply be assessed an underpayment penalty in your 2025 return if fall below the 'safe harbor' amount).