Estimated taxes following a one time capitol gain on sale of a home.

[Mike 8003]

We sold a home in January of 2023. Paid no estimated taxes during 2023. Turbo Tax assed no penalty on the 2023 tax form, but included estimated taxes about $5000 each quarter in 2024. this is a one time event, our income will return to previous years levels in 2024. we will be unable to pay this amount as it is 22% of our annual income. it will come back to us in 2025 as an overpayment because our withholding will cover or tax liability,

[KrisD15]

Estimated Tax payments generated by TurboTax is based on the tax information for the tax year and is only an educated guess. 

If your tax situation will change, you needn't pay the estimated payments the program suggests to you. 

Next year, make sure the program does not bring over the estimated payments as if you paid them. 

Please check by going to

Deductions & Credits 

Estimates and Other Taxes Paid

Estimates   START or UPDATE 

Federal estimated taxes for 2023 (Form 1040ES)   START or UPDATE

Answer "No" if no payments were made