topic Just be aware that State may be different. in Get your taxes done using TurboTax

I work in a job where taxes are being withheld. However, I just received money through a patent. Do I have to file taxes quarterly now?

jscheid — Thu, 06 Jun 2019 13:33:54 GMT

You may, or you can increase your withholding. See this:...

SweetieJean — Thu, 06 Jun 2019 13:33:57 GMT

You may, or you can increase your withholding. See this:

https://www.irs.gov/taxtopics/tc306.html

State may be different.

You do not "have to". Essentially, it's optional for some...

Hal_Al — Thu, 06 Jun 2019 13:34:07 GMT

You do not "have to". Essentially, it's optional for someone in your situation.

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 might be able to increase your W2 withholding, at your regular job, to account for the extra 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. (Your prior year tax return must cover all 12 months.)

TurboTax (TT) can prepare the payment vouchers. In your 2016 software, enter at:

Federal Taxes or Personal (H&B version)

Other Tax Situations

Other Tax Forms

Form W-4 and Estimated Taxes - Click the Start or Update button

If your goal is just to avoid the underpayment penalty, then paying 100% of the prior year tax liability is the “safe haven”

Thank you so much. Does this mean that if this year's wit...

jscheid — Thu, 06 Jun 2019 13:34:11 GMT

Thank you so much. Does this mean that if this year's withheld amount exceeds what I payed last year it is acceptable to not pay taxes on my patent money that I received this year until next April?

Yes.

Hal_Al — Thu, 06 Jun 2019 13:34:14 GMT

Yes.

Thank you very much!

jscheid — Thu, 06 Jun 2019 13:34:18 GMT

Thank you very much!

Just be aware that State may be different.

SweetieJean — Thu, 06 Jun 2019 13:34:21 GMT

Just be aware that State may be different.

That is an excellent point! In fact, I know that my state...

jscheid — Thu, 06 Jun 2019 13:34:24 GMT

That is an excellent point! In fact, I know that my state requires me to pay at this point already which I will do. I am very grateful for all your help.