topic Estimated Tax question in After you file

Estimated Tax question

Ziggai — Thu, 09 Jul 2020 13:15:36 GMT

I started a new job in the middle of 2019 making significantly more than I did previously. So, for 2019 I had to pay a good bit in tax and turbo tax said I need to make estimated payments in 2020.

Fastforward to this year, and my wife has lost her job due to the pandemic.

I don't expect to have a tax bill like I had last year.

Do I still need to make the estimated payments?

Re: Estimated Tax question

xmasbaby0 — Thu, 09 Jul 2020 13:31:25 GMT

The estimated payments are optional. If you expect to owe at least $1000 at tax time next year, they can be a good idea to prevent an underpayment penalty next year. If you do not want to use the 1040ES forms you do not have to -- or if you want to pay lower estimated amounts you can cross out the printed amount and write in a different amount if you want to.

Re: Estimated Tax question

Ziggai — Thu, 09 Jul 2020 14:07:30 GMT

Thank you. This information is so hard to find. Appreciate your help