I’m retired. Why do I have to pay quarterly taxes.

[K M W]

Individuals generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.  If you filed a 2023 tax return in TurboTax and owed over $1,000, the software will generate estimated quarterly tax vouchers to help pay in during the year so you don't owe as  much at tax time next year.

Keep in mind that you may be subject to IRS interest and penalties if you owe over $1,000 at tax time.

If you really don't want to make estimated tax payments, and you have income from a W2 job and/or retirement plan income, you may be able to increase the withholdings on that income to cover your tax liability, and therefore not be subject to quarterly taxes.

[VolvoGirl]

Did Turbo Tax print out the 4 estimated 1040ES slips?  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. 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. They are just a suggestion. You can ignore them. You might want to adjust your withholding at work so you won't owe too much next year.

Are you having enough tax withholding taken out of your retirement?  You might want o increase the withholding.    Was any of your Social Security taxable?  Up to 85% of SS can be taxable depending on your other income.  

If you don't pay in enough during the year and have a large tax due on your return there is an Underpayment Penalty.  

[FranklinF]

Great question as there are many that have the strongly held belief that we will pay taxes until we die and even then beyond the grave !!!
🙂

Seriously, having to pay taxes truly depends on your overall circumstances. One of the best examples of the above is the taxation on Social Security Benefits.

Per The Social Security Administration:

File a federal tax return as an "individual" and your combined income* is

• Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits.
• More than $34,000, up to 85% of your benefits may be taxable.

File a joint return, and you and your spouse have a combined income* that is

• Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.
• More than $44,000, up to 85% of your benefits may be taxable.

Social Security Administration 

In general, a more accurate estimate of the need of making ESTIMATED TAX PAYMENTS (even for retired folks) can be obtained by using using a Tax Calculator where you can input the other circumstances surrounding your next year tax filing obligations (interest income, dividend, gambling winnings, etc.).
Tax Calculator 2023 

Lastly, below are the Estimated Taxes Deadlines:
1.  April 15th
2.  June 15th
3.  September 15th
4.  January 15th
When to Pay Estimated Tax 

 
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