Estimated tax payments too high

[Deb2450]

I filed taxes through TurboTax for 2023. We had a one-time capital gains from the sale of land. We took a the standard deduction and did not itemize. Our estimated tax payments are based on our adjusted gross income, which was $98,000 more than our normal yearly income. I don't want to overpay but I'm not sure how to remedy this situation. 

[DoninGA]

You do not need to pay 2024 estimated taxes if on your 2024 tax return you either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if you paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.

[NCperson]

@Deb2450 you are not obligated to use the dollars listed on the vouchers you have. 

Assuming the land was a long term gain, reduce the vouchers by $98,000*15% or $15,000.   

Did you pay what was on the vouchers back in April and June? and now you are trying to figure out what to do in Sept?  more details please.

[VolvoGirl]

You can ignore them.  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 had capital gains.    They DO NOT get sent to the IRS or state with your return.  The IRS won't be expecting them.

If you owe too much on your tax return you may pay an underpayment penalty.  

You must make quarterly estimated tax payments for the current tax 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).