2018 tax pre-payments necessary?

Forum|Forum|7 years ago
June 1, 2019
1 reply
6 views

On my Tax Returns print-outs, the instructions say to make four pre-payments for 2018 over the course of the coming year. Is this required, or is this just a suggestion from TurboTax? The instructions say that I could incur an underpayment penalty if I don't do the pre-payments, but I'm confused because I've never done pre-payments before for taxes, and I've never incurred penalties. What should I do? Thanks!

TurboTax Premier Online

JulieCo

Level 11

It depends. The estimated tax payments for 2018 are not required, but you will incur a penalty if your taxes are underpaid for the year. The estimated tax voucher payments are to help prevent a penalty from occurring. If you have W-2 income, another option is that you can fill out a new W-4 form and increase the taxes withheld by your employer. Be sure to check out some of the articles included in the links below to help you decide whether to use/pay them or not.

Here are scenarios plus information for when estimated tax vouchers for 2018 are generated in TurboTax.

https://ttlc.intuit.com/replies/3301872

https://ttlc.intuit.com/replies/3301891