I won the lottery this year, and now I have to pay estimated tax payments for next year. Should I still make these payments if I expect all my taxes to be withheld from my job? I will not get this kind of untaxed money again. Also, do I have to track my payments or will Turbotax do it for me so that I can get my money back if I have to pay them?
I won the lottery this year, and now I have to pay estimated tax payments for next year. Should I still make these payments if I expect all my taxes to be withheld from my job? I will not get this kind of untaxed money again. No. Unless you want to get a huge refund when you file your 2022 return in 2023.
Also, do I have to track my payments or will Turbotax do it for me so that I can get my money back if I have to pay them?
Turbotax is not informed of any estimated tax payments you make.
Right. The 1040ES are estimates for next year. The 1040ES quarterly estimated tax payments DO NOT get sent to the IRS or state with your return. They are optional to pay. Turbo Tax is very conservative and doesn't want you to owe too much 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 won the lottery. You can ignore them. You might want to adjust your withholding at work so you won't owe too much next year.
If you do pay them you have to keep track of what you paid so you can enter them into next year's return to get credit for them.