Estimated State tax payments

[cinjam3167]

If paid estimated tax payments in 2022 why would I have amount due when filing taxes.  For instance parents paid state estimated taxes quarterly in 2022.  When filing their taxes on turbo taxes, it is showing they owe taxes.  They will pay estimated state tax again in 2023.

why would it show they owe?

[SharonD007]

There are several reasons why you may owe taxes even if you paid estimated taxes during 2022 which affect your taxable income. Some common reasons are:

• New sources of income 
• Fewer deductions
• Fewer credits
• Change in filing status

Refer to TurboTax Help article Why do I owe taxes? for additional information.

Also, check your state tax return to ensure that the estimated tax payments are entered in TurboTax. 

1. Launch TurboTax
2. In the left menu, select State Taxes and then Your State Returns
3. Select Edit next to your state return
4. Type estimated tax payments in the search bar then select Jump to estimated tax payments
5. You should be at the Estimates and Other Income Taxes Paid screen
6. Select Start or Edit by State estimated taxes for 2022
7. Answer the interview questions to ensure that the estimated tax payments are entered correctly.

If you still need assistance, please contact us again.

[fanfare]

your withholding + estimated tax must be at least your tax.

Otherwise, you are going to owe at tax time. You may be penalized.

For federal purposes, you have a shortfall allowance of $1,000 to avoid penalty.

@cinjam3167 

[VolvoGirl]

Estimated payments mean exactly that....they are estimates of what you will owe.  It is just an estimate so you don't end up owing too much next year.   I cashed in a lot of savings bonds last year so I sent in extra estimated payments to cover it.  I was lucky and over estimated so I got a refund.