estimated tax payments

[Louisll29]

After completing and submitting my 2022 taxes. Turbo Tax stated that for my 2023 taxes I should make 4 estimated tax payments of $914 dollars for 2023. 

I ended up paying only $426 after filing my taxes for 2022. My W4 paperwork has not changed, I bought a house and will still be making payments...bought in 2021 so new mortgage and my income is generally the same and might even go down a little.

Why is turbo tax suggested I pay so much in estimated taxes? I have never made any estimated tax payments before.

Laura 

[conniem123]

Hi Laura,

Hope you are having a great day!

I understand you owed some federal tax when filing your 2022 tax return and TurboTax generated estimated tax coupons for tax year 2023.

One reason the coupons may have been generated is if you had estimated tax penalty on line 38 of your 2022 tax return.  If you did, the estimated tax penalty is a penalty the IRS assesses when not enough tax has been withheld throughout the year.  The coupons would be calculated to avoid the penalty for tax year 2023.

I hope this information is helpful!

[rschule1]

Hi There:

There seems to be conflicting information. , I'd recommend downloading the TaxCaster App and inputting new income information in the App for a 2023 tax forecast, which will allow a proper comparison. 

[Louisll29]

I checked line 38. I did not pay any penalties for 2022.

Since I only owed an additional $426 for 2022, I must have done a good job of filling out my W4s ect. I made no estimated tax payments for 2022 or any previous years. So why in 2023 would things change if I keep my W4 the same as last year.

[conniem123]

Without seeing your tax return, it is hard to determine the reason the 2023 estimated tax vouchers were generated.  When you prepared your tax return , did you go through the steps in Federal / Other Tax Situations/ W-4 and estimated taxes?  If you did possibly an item was updated.  If you did not, you can sign in to your TurboTax account and from the Tax Home page click on Add A State.  You are back in your 2022 tax return preparation so be careful not to change any information.

Then click on Federal, then Other Tax Situations, then W-4 and estimated taxes.  Answer No to update Form W-4 and answer Yes to update estimated taxes.  Go through the screens updating information for 2023 to determine if any estimated payments are needed.

I hope this helps!

[VolvoGirl]

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.

If you are receiving a refund or low tax due and TurboTax prepared the vouchers then your tax liability was probably reduced by credits.

[Louisll29]

You want me to enter my 2022 or 2023 information into TaxCaster????

...It seems to be asking basic tax info just like Turbo tax does when you file but a more "quick" version.... So how would this help? If I put my 2022 info in I should get about the same info as I did when I filled by 2022 taxes

[conniem123]

Hi,

I recommend using the estimated tax feature within your TurboTax account.  TurboTax will update personal information, and then you will be prompted screen by screen with the 2022 information and you enter 2023 estimates for income and any changes.

Sign in to your TurboTax account and from the Tax Home page click on Add A State.  You are back in your 2022 tax return preparation so be careful not to change any information.

Then click on Federal, then Other Tax Situations, then W-4 and estimated taxes.  Answer No to update Form W-4 and answer Yes to update estimated taxes.  Go through the screens updating information for 2023 to determine if any estimated payments are needed.