Hello,
I just filed my tax return through TurboTax. Turned out I owe ~$6000 to the IRS, so I chose to pay in installments.
After I filed my returns, I'm looking at my documents and there are 4 1040-ES Payment Vouchers, PLUS another 1040-V Payment Voucher for $1000... totaling to close to $10,000 !
I also don't see this reflected in Form 9465 (Installment Agreement Request) that was generated by TurboTax. What I requested was to pay $1000 now, and then monthly $1000 payments, all through direct deposit (checking account information provided).
Also please note that I don't have to pay "estimate taxes", I'm not self-employed, I get a W2 and my employer withholds taxes from my paychecks.
So I'm not sure where the 1040-ES Payment Vouchers came from... I'm really confused! Does this mean I'm going to pay close $4000 in interest to the IRS?! If yes, then I absolutely don't want to do that... I can borrow from friends and family and pay the whole thing in one payment right now. How can I pay the whole thing early?
To summarize:
1. Why did TurboTax include 1040-ES vouchers in my returns?
2. What does my installment plan mean... am I going to pay exactly what I owe in 6 payments (I chose to pay $1000 now, and rest in $1000/month installments), or should I expect to pay interest?
Thanks!
