Hi
In 2019, I filed my tax return for 2018 and I got some 1040-ES forms for 2019 estimates taxes, but I paid nothing during last year.
This year, when filing my 2019 tax return, I had to pay estimated tax penalties (for both federal and state), and got again 1040 ES forms for 2020 too.
I would like to know it is mandatory to pay these estimates taxes. If optional, why IRS charges me its penalties.
I don't want to pay these quarterly payments. Can I cancel it to avoid the penalties for next year?
Thank you very much
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paying the estimates is not required but if you don't you have two choices:
1) increase withholding so there are no penalties or
2) pay the penalties.
As I understand it, I got the estimates for next year because I owe IRS tax this year (That's why IRS estimates the amount for me to pay in advance)
If next year, I will get the refund when filing my tax , so I don't need to pay any penalties because I owe IRS nothing
Am I right?
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