DawnC
Expert Alumni

Get your taxes done using TurboTax

You are not required to make estimated payments; the reason you opt to make estimated payments is to avoid possible penalties.   The payment of your 2023 tax liability will not count as an estimated 2024 tax payment; it is a 2023 tax payment.   If you meant you will be making an estimated tax payment in the amount of your 2023 tax liability, then yes, you won't incur a penalty in 2024 and do not need to make any more payments. 

 

To avoid penalties, your 2024 estimated payment(s), since you will have no withholding, must equal the lesser of:

 

#1-  90% of your 2024 Federal tax - which should be much lower compared to #2.   

#2 - 100% of your 2023 federal tax ( it's 110% if your 2023 Adjusted Gross Income is $150,000 or more)

 

You can use TurboTax to estimate your tax liability and generate vouchers if you think you will need them.

 

  •  With your tax return open, search for 1040-es (be sure to include the dash) and select the Jump to link.
  • Answer No to the question Do you want to change your W-4 withholdings for 2024?
  • Answer the questions about things like your 2024 filing status, income (capital gains), and deductions.  
  • Eventually, you'll come to the Print Vouchers? screen.  Answer Yes, and we'll include your 2024 1040-ES payment vouchers when you print a copy of your return later.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"