Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
eric213
Level 1

Maryland Estimated tax payment

After completing a married filing jointly 2019 tax return, we received Personal Tax payment vouchers for $293.00 each, once per quarter for an estimated 2020 tax year for the state of Maryland.  We both have jobs in the state and have state  taxes withheld, we also received a refund from both federal and state for 2019.  Can anyone help to as why we are getting these estimated payment vouchers for the following tax year when we got a refund for the previous year?

3 Replies
DawnC
Expert Alumni

Maryland Estimated tax payment

Underpayment penalties are assessed if you don't withhold or pay enough tax on income received during each quarter.  In fact, it's entirely possible to get hit with an underpayment penalty even though you paid your tax bill in full by the April deadline or are getting a refund.

 

We'll automatically include four quarterly 1040-ES vouchers with your printout if you didn't withhold or pay enough tax this year. We do this to head off a possible underpayment penalty on next year's taxes.  You may get these vouchers if you're self-employed or had an uncharacteristic spike in your income this year. For example, you sold stock or took a large distribution from your retirement plan.

 

You're not required to make estimated tax payments; we're just suggesting it based on the info in your return. If you feel they're not needed for next year's taxes, you can shred them.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
7759as
New Member

Maryland Estimated tax payment

Can I use 2 out of the 4 estimated Md. quarterly payments if that is all I think are needed?

VictorW9
Expert Alumni

Maryland Estimated tax payment

Yes, you can use just about as few as you need to. Ensure that you keep your records so you can take credit for estimated payments when preparing your taxes.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v