Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
hrishirao
New Member

Estimated Taxes - I am being asked to pay estimated taxes in 4 installments to IRS. I would like to understand if this standard requirement and why TurboTax is asking.

What is the rule for estimated taxes? Why does TurboTax asking for me to make payments for Estimated taxes in 2018? 

1 Reply
LisaBr
New Member

Estimated Taxes - I am being asked to pay estimated taxes in 4 installments to IRS. I would like to understand if this standard requirement and why TurboTax is asking.

According to IRS Publication, https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes, "Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.

Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed.

You may have to pay estimated tax for the current year if your tax was more than zero in the prior year."

With all that being said, you are not required to make these payments.  These are generated for your convenience and nothing is transmitted to the IRS. 

If you did owe more than $1000 in 2017 and your tax situation will be the same next year, the IRS recommends paying estimated taxes to avoid an underpayment penalty next year.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

Manage cookies
v