No, filing and paying estimated taxes is voluntary, but TurboTax will try to help you avoid penalties by suggesting estimated taxes based on the current tax return.
In general, you must make estimated income tax payments if you expect to owe more than $500 when you file your 2024 MI-1040 return. But you don't need to make those payments if you expect your 2024 withholding to be at least:
- 90% of your total 2024 tax (qualified farmers,
fishermen and seafarers use 66 and 2/3 percent),
- 100 percent of your 2023 tax, or
- 110 percent of your total 2023 tax if your 2023 adjusted
gross income is more than $150,000 ($75,000 for married
filing separately).
This extra income in 2023 will increase the required payment under the second and third calculation.
The bottom line is that if you are confident you will owe less than $500 when you file your 2024 tax return, or that 90% of your 2024 tax will be covered by your state tax withheld, you don't need to make those estimated payments.
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