Estimated quarterly payments

[jamieanddeb]

When I filed the 2023 tax return, I was notified that I will have to begin making quarterly estimates payments of $642. The first time I owed was in 2022 for only $143 and in 2023, we received a $21 refund. Can you please explain the reason behind having to now make estimated payments?

[Vanessa A]

Who notified you that you will need to make the payments?  Are you self-employed?  W-2 Employee?

In general, if you are an employee and have your taxes withheld, and are getting  a refund and expect the same next year, then you would not need to pay estimated taxes.

[jamieanddeb]

Turbo tax did. It came up in the forms when I filed the 2023 return. 

[jamieanddeb]

Yes both my husband and I are employed…W2 employees. I though it was strange. 

[VolvoGirl]

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. 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. You can ignore them. You might want to adjust your withholding at work so you won't owe too much next year.

[jamieanddeb]

Thank you! I did not pay on 4/15 and did adjust our withholdings. Thank you for confirming my thoughts! 🙂