topic Estimated individual income tax in State tax filing

Estimated individual income tax

Marktsr — Tue, 04 Feb 2020 21:14:24 GMT

I received an Estimated Individual Income Tax form from the state of Michigan. I dont understand why. I've worked for the same company for 25 years and have never had to do this. State income taxes are taken out of my paycheck each week. I am receiving a refund on my 2019 tax return. So what am I supposed to do with this estimated tax form?

Re: Estimated individual income tax

JotikaT2 — Tue, 04 Feb 2020 21:37:32 GMT

It depends.

If your withholdings will cover your tax obligation, you can disregard the form as you will be making the required payments throughout the tax year.

Michigan will send out estimated payment vouchers if you have owed the Michigan Department of Treasury over $500 in previous years. Essentially if you expect to owe more than $500 on your return when you file, you may have to make estimated payments.

Re: Estimated individual income tax

Marktsr — Tue, 04 Feb 2020 22:02:52 GMT

Thanks for your response. I don't expect to owe anything by the end of the 2020 year. I didn't owe anything for 2019, in fact got a $5 refund. That's why I dont understand receiving the form from them. I never have before.

Re: Estimated individual income tax

JotikaT2 — Tue, 04 Feb 2020 22:10:56 GMT

You're welcome.

It could be just something that automatically is sent from the State of Michigan if your tax liability hits $500.

As long as you don't have any sort of underpayment penalty on your Michigan return, you do not need to worry about the estimate vouchers mailed to you.