TurboTax said I was getting a refund but my return has 4 estimated tax payment vouchers!

[Bob in Plano]

TurboTax said I was getting a refund of $4,047 but my downloaded tax return has 4 estimated tax payment vouchers or $2,140 I was not expecting. Why am I paying $8,560 in estimate taxes in 2024 when I am getting a refund of $4,047.  This make no sense! Is there a system glitch?  And, my interest entered for 1099-INT doubled too!   Not good folks! HELP!!!  

[xmasbaby0]

Those 1040ES vouchers are not for 2023.   They are optional vouchers for paying estimated quarterly tax for 2024 to help you avoid a big tax bill at tax time next year.  You do not have to use them if you do not want to pay quarterly payments.

[Bob in Plano]

"Those 1040ES vouchers are not for 2023.   They are optional vouchers for paying estimated quarterly tax for 2024 to help you avoid a big tax bill at tax time next year.  You do not have to use them if you do not want to pay quarterly payments."

Since I'm getting a $4,047 refund this year how did TurboTax determine that four $2,140 estimated quarterly tax payments was the amount I should pay in 2024 ('if' I elect to make estimated payments) so my 2024 tax owed wouldn't be too much? That amount ($8,560) doesn't make any sense! 🙄   

Can the estimated payment amount be logically explained under the circumstances above with the refund I'm getting? 

[VolvoGirl · Accepted solution]

Turbo Tax is very conservative and doesn't want you to owe too much next year. They might have printed out if you got a one time large income this year. Like if you took a IRA or 401K distribution. You can ignore them. You might want to adjust your withholding at work so you won't owe too much next year.

If you are receiving a refund or low tax due and TurboTax prepared the vouchers then your tax liability was probably reduced by credits. Your Tax Liability is the amount on 1040 line 24.  It is the tax you owe on your income.  But you might qualify for credits that can reduce your tax due or even give you a refund.  Credits are on lines 27-31.

[Bob in Plano]

"

Turbo Tax is very conservative and doesn't want you to owe too much next year. They might have printed out if you got a one time large income this year. Like if you took a IRA or 401K distribution. You can ignore them. You might want to adjust your withholding at work so you won't owe too much next year."

The amount of estimated tax payments just doesn't jive because the income has been and will be about the same for the past 3 years. To get a 4k refund this year but for TurboTax to suggest I pay over $8k next year in estimated taxes simply doesn't compute. 

[AnnetteB6 · Accepted solution]

TurboTax makes the estimated payment calculation based on your expected income and tax credits.  The difference between your bottom line 2023 return and your estimated payments could be due to losing certain tax credits that contributed to your refund for 2023, or from having a one-time credit included for 2023 that you may not claim for 2024.  Unfortunately, no one here can see your return to truly explain why the estimated vouchers are higher than you might have expected.  

If you want to learn more about the assumptions being used by TurboTax and make some changes to the estimated payment vouchers, use the steps in the following TurboTax help article:

Can TurboTax calculate next year's federal estimated taxes?

@Bob in Plano 
 

[Bob in Plano]

Instead of actually receiving a refund do I have the choice to use it for next year's tax return? In my case, it's too late now since I've already e-filed so I'm not able to change it from having the refund direct-deposited. 

I'm hoping my return gets rejected because TurboTax's system actually doubled (i.e. 2X) an interest amount entry. So, this interest amount error will be twice what is reported to the IRS by the provider.  (This same type doubling  error was happening in 2019 but apparently never fixed.)

But even if my return is rejected and I'm able to make a change and e-file it again I'm guessing it's still probably too late for me to change how my refund will be used - to change it for use on next year's return... 

[xmasbaby0 · Accepted solution]

f your e-file is accepted, it is too late to change how you receive your refund.  The IRS does not allow it.

If the e-file is rejected, you can go back into the FILE section and change how you want to receive the refund, and re-file.