So, I got the added vouchers for estimated payments on my return after filing my federal tax return for the year.
So here are my questions and concerns:
1. I received unemployment last year and stopped receiving them in July and am still very much unemployed and a student. I am claimed as a dependent on my mother's tax return for 2021 so making these payments really isn't possible for me.
2. I filed my tax return later than April 18, 2022, as in today and both federal and state were accepted so the payment schedule is already off for her in quarterly installments.
3. Because I knew I was filing for an extension, I initially paid $1,414 to the IRS at the 4/18 deadline, and when I just filed, I paid $146 more than was due through TurboTax. Does all this count for anything?
Considering all this and what I read about why people pay estimated taxes, I don't understand what to do now. Also, I am still not entirely sure about what they are and I certainly don't understand how they apply to me this year in 2022.
All the help I can get would be appreciated, Thank you!
First of all estimated payments are optional to pay. They don't get sent with your return and the IRS won't be expecting them. You can ignore them.
Your tax return had $146 tax due after the extension payment? Or what do you mean you paid more than was due? How and why did you pay more? Did the $1,414 extension payment show up on schedule 3 line 10 which goes to 1040 line 31. The extension amount was not the final tax due amount.
So, that is a relief that the estimated payments are optional.
Second, yes, the amount of 1,414 appears on that line in Schedule 3. I was nowhere done with my tax return in April and only got to a certain point on TurboTax where my amount due for payment since I got unemployment was that number. Once I finished my federal today before moving to the state, I answered more questions from TurboTax (cannot remember which ones) and since I mentioned I paid 1,414 to the IRS by the tax deadline, TurboTax gave me the 146 that was left owed for my federal return so whilst submitting my return today, I also paid that 146.
To clarify I didn't know what estimated payments were so I didn't know if that amount on the vouchers were from the 1,414, I entered or not.
Did you pay any of the estimates? If you paid any, what year were they for - meaning what year did you pay them in? They would be for the next year tax return.
No, estimated payments weren't paid just the taxes owed at the deadline and the 146 that was left to owe and paid today.
Also, you wouldn't happen to know how to calculate MAGI.
I know my AGI but since I only had unemployment I am confused as to adding other numbers from my return to determine my MAGI. This is needed for my mom's return.
Sorry I'm not up on MAGI. And there are several different MAGI for different things.
Well I can't see your whole return but you got credit for the extension payment and paid the remaining tax due so that part is right.
So just to be sure the whole estimated payments thing is not a problem? Also what do you mean I got credit for the extension Payment? Sorry for so many questions I just want to be sure. My federal and state both got accepted no problem but just to be certain.
Estimates were produced only because you owed more than $1000 on the 2021 return and are OPTIONAL to pay ... those are not sent to the IRS when you filed. If your situation changed in 2022 and you will not owe more than $1000 on the 2022 return then estimates are not required at all.