Get your taxes done using TurboTax
Thank you so much for this question, I tend to get this a lot. Many Taxpayers do not pay attention to the estimated tax vouchers that Turbo Tax prints for them. However the IRS requires taxpayers to pay estimated taxes/or increase your withholding if :
- An individual will owe at least $1,000 in tax after subtracting withholding and credits
- Withholding and credits will be less than the smaller of :
- 90% of the tax to be shown on this year's tax return
- 100% of the tax shown on last year's tax return or (your AGI is more than $150,000)
Income from dividends, interest, capital gains, rent, royalties, and self-employment are not subject to withholding so Taxpayers with these types of income MUST make quarterly estimated tax payments.
When you do not make estimated tax payments or have adequate withholding you become subject to a underpayment penalty. Turbo Tax always asks you if you want the software to calculate your penalty or would you like the IRS to calculate the penalty.
