My wife and I both receive W2's from our employer who withholds Federal Tax from our bi-weekly paychecks.
This past calendar year, we owed $3,000 on Federal Taxes. Since then we updated our W4 to withhold more for Federal Taxes. (Claiming 0 Dependents now instead of 2--we have two young children) Hopefully the additional withholding from our bi-weekly paychecks will result in a lower Federal Tax payment next year or even a refund.
However, after completing my Federal return I received a Quarterly Estimate Tax Payment voucher for $1,500.
As I already adjusted our W4s am I still required to make quarterly estimate payments? Doing so seems like I would just receive a nice refund the upcoming calendar year. My concern is that we would are subjected to penalties if I do not make estimate tax payment. Reading the text, it seems estimate tax payments are required if you owed more than $1,000 on your Federal return. Quarterly Estimated Tax payments make sense if you are a independent contractor, but in our case we have federal tax withheld bi-weekly. (in the prior year just not enough)
Looking for guidance .
Thanks in advance
