Estimated taxes

[kf129856]

Hello, this year, we owe taxes.  I received the estimated tax quarterly payment amounts of they total WAY more than I had to pay this year.  Do I have to pay that amount?  Can I just take this year's number and divide it by 4 and send in that number?

[VolvoGirl]

Did you get the 4 1040ES payment slips? They are prepayments for NEXT year. They are optional to pay. The 1040ES quarterly estimated tax payments DO NOT get sent to the IRS or state with your return. So they won't be expecting them. If you are receiving a refund or low tax due and Turbo Tax prepared the vouchers then your tax liability was probably reduced by credits. 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 had a large capital gain. They are just a suggestion. 

If you want to make estimated pre payments for next  year go to.....

Federal Taxes or Personal (Home&Business version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

Say No to W4. When you get to the W4 and Estimated Taxes section, say you want to adjust your income to go though all the screens.

[Vanessa A]

It depends.  Are you going to have more income than last year? 

Did you walk through the steps to determine what your estimated taxes will be for next year?  If not, then you should to make that number more accurate. 

Technically, as long as you pay 100% of your previous years (2024) taxes in 2025, you would be exempt from the underpayment penalty, although you would have to include form 2210 with your 2025 return.  If you make more than $150,000 or $75,000 if you are married filing separately, then you would need to pay 110% of your 2024 tax liability.