Do I pay what I owe for 2021 AND the estimated taxes for 2022? TurboTax says I have to pay estimated taxes for 2022. This would be the first time for me, so I'm confused.

 

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I'm a non-expert, except that I have been filing my own returns for about 60 years.

 

Tax for 2021 and first of four estimated payments for 2022 are due by April 18(? something like that).  I pay those two with separate checks, and send each separately. Actually, since you are asking the question of Turbotax, suggest you e-file the 2021 amount, and send a check for the first estimated payment for 2022.  Send it out the same day you e-file so you don't forget! And I send the additional three estimated payments when each is due.   

MayaD
Expert Alumni

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The first payment due date is 04/18/2022.

When you prepare your 2021 return, we'll automatically calculate your 2022 estimated tax payments and prepare 1040-ES vouchers if we think you may be at risk for an underpayment penalty next year.

 

The deadlines for tax year 2022 quarterly payments are:

  1. April 18, 2022
  2. June 15, 2022
  3. September 15, 2022
  4. January 15, 2023

 

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Get your taxes done using TurboTax

So is it a suggestion to pay the estimated taxes or I have to?  Cause I know my taxes are going to be very different next year.  We bought and sold a house at the end of January 2022.

Get your taxes done using TurboTax

This is a personal tax return?  If yes, payment that you owe after doing 2021 must be paid or permission for installments, if a large amount.  Yes, the estimated taxes for 2022, 1st qtr must also be paid on the due date.

Get your taxes done using TurboTax

You don't want to underpay the amount you will actually owe.  I found this next by searching "estimated tax payments IRS":

How To Figure Estimated Tax

Individuals, including sole proprietors, partners, and S corporation shareholders, generally use Form 1040-ES, to figure estimated tax.

To figure your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year.

When figuring your estimated tax for the current year, it may be helpful to use your income, deductions, and credits for the prior year as a starting point. Use your prior year's federal tax return as a guide. You can use the worksheet in Form 1040-ES to figure your estimated tax. You need to estimate the amount of income you expect to earn for the year. If you estimated your earnings too high, simply complete another Form 1040-ES worksheet to refigure your estimated tax for the next quarter. If you estimated your earnings too low, again complete another Form 1040-ES worksheet to recalculate your estimated tax for the next quarter. You want to estimate your income as accurately as you can to avoid penalties.

You must make adjustments both for changes in your own situation and for recent changes in the tax law.

Hal_Al
Level 15

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Q. So is it a suggestion to pay the estimated taxes or I have to?  

A.  It's a suggestion. 

 

But, if you fail to pay enough, in a timely manner, you may be subject to an "underpayment" penalty at tax filing time (or the IRS will bill you later).

. You should pay in quarterly estimated taxes if you don't have enough withholding taken out to cover the tax on all your income. 
You should make estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits. 
- 2. You expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or  100% of the tax shown on your prior year’s tax return. (110% if your income was more than $150K) . 

KrisBB
New Member

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Check this link below.... Estimated tax payments are usually required for self employed to pay tax as you go.  If you are not self employed (and get a W2), TurboTax automatically sends these with the Filing Instructions for the following year if it looks like you might not be withholding enough, so you won't face an underpayment penalty.    

 

https://ttlc.intuit.com/community/tax-payments/help/why-did-1040-es-estimated-tax-vouchers-print-out...

 

ColeenD3
Expert Alumni

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If you know that the 2021 balance due was a one-time event and that the same won't be true for 2022, ignore the forms. They are a courtesy, in case you do need them.