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My tax return included a 1040 ES. I did not expect that. Can you please explain why and how that affected my return? Thank you. Harley

 
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2 Replies
LenaH
Employee Tax Expert

My tax return included a 1040 ES. I did not expect that. Can you please explain why and how that affected my return? Thank you. Harley

Form 1040-ES are estimated tax payments for 2021 and would not effect your 2020 tax return. If not enough taxes are withheld from the income you receive, making quarterly estimated tax payments can help you avoid paying a big tax bill or an underpayment penalty on your tax return.

 

TurboTax will automatically include four quarterly 1040-ES vouchers with your printout if you didn't withhold or pay enough tax this year. 

 

You may get these vouchers if you're self-employed or had an uncharacteristic spike in your income this year. For example, you sold stock or took a large distribution from your retirement plan.

 

You're not required to make estimated tax payments; TurboTax is just suggesting it based on the info in your return. If you feel they're not needed for next year's taxes, you can shred them.

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My tax return included a 1040 ES. I did not expect that. Can you please explain why and how that affected my return? Thank you. Harley

Thank you for the explanation.  I will likely ask my plan administrator to simply hold more out.  Harley

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