Estmated tax paymnets

[taxmoney101]

Hi there,

Do i need to setup the Estmated tax payment quarterly as suggested by the turbotax ? Can i Just ignore it like other times?

Thanks

[LenaH]

It depends. If you receive significant non-wage income, such as from self-employment or investments, you will likely need to pay quarterly estimated taxes or run the risk of underpayment penalties in addition to a large year-end tax bill. If you’re at risk for an underpayment penalty next year, TurboTax will automatically calculate quarterly estimated tax payments and prepare vouchers (Form 1040-ES) for you to print. 

If you are self-employed, federal, state, and Social Security taxes aren't taken out of the income you receive. Instead of paying the entire amount you owe in April, setting up estimated tax payments gives you the flexibility to make four smaller payments during the year.

There are other types of income where taxes also aren't withheld. You'll want to consider making estimated tax payments when you receive significant income from the following sources:

• Alimony
• Dividends
• Earnings from a business
• Gains from the sale of stock or other assets
• Interest income
• Rental income

[taxmoney101]

I do have the rental income on top of my W2 income.  How can i pay the penalty for 2021 as i didn't pay the estimated payments last year? 

[PattiF]

If you owe a penalty to the IRS because of the amount that you owe, this is calculated by TurboTax and added to your return.

If you don't pay estimated payments for the tax year 2022, you may owe a penalty for that year. 

TurboTax will automatically calculate your 2022 estimated tax payments and prepare 1040-ES vouchers if we think you may be at risk for an underpayment penalty next year.

[VolvoGirl]

The underpayment penalty on 2021 1040 line 38 is added up to line 37.

You might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you.  It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form.  If the 2210 doesn't show up in the left column, click on Open Forms at the top of the left column.  Type 2210 in the search box and open the 2210 form.  Check box C to let the IRS calculate it.

[taxmoney101]

found the 2210 . It is saying that I don't owe any penalty. 

[DavidF2]

Question.

I usually pay estimated taxes using TurboTax to generate the forms.  I completed all the TurboTax steps to generate these forms which included adding a W4P estimate for new job and the additional income which I will need to pay taxes.  I just filed my taxes.  I do not see the quarterly 1040ES forms in my list of filed and record document.  What happened to them.  Do I need to file an amended return to have these documents available for 1040ES1, 1040ES2, 1040ES3, and 1040ES4.  I used the forms send to me by IRS and state for estimated taxes.  I have not had this problem in previous years.  Does the 2021 Turbo tax program have an error?           

[CarissaM]

Please follow the instructions here to print off your estimated tax vouchers. You do not need to amend. @DavidF2