Are the "Estimated Payments to Make for Next Year's Return" that are listed on my 2022 tax return required payments? Will I incur a penalty if they are not paid?

[djgomes112]

I did not select to pay estimated payments for 2023 but noticed that my 2022 tax return includes a schedule to pay in four installments for 2023.

[VolvoGirl]

No, The 1040ES are estimates for next year. The 1040ES quarterly estimated tax payments DO NOT get sent to the IRS or state with your return. So they won't be expecting them.  They are optional to pay. 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.

[SaulG]

The estimated payments are just that. You are not required to pay them. However, depending on the amount of taxes you owe, you can receive what is called a "penalty for underpayment of estimated tax". Bottom line the IRS wants to promote on-time and accurate estimated tax payments from taxpayers on a quarterly basis. If you do not, you could trigger a penalty.