Payment vouchers are generated when you have not made tax payments as you earn income throughout the year. You could face underpayment penalties in some cases even though your tax return shows you have a refund.
Typically, estimated tax payments are due if you expect to owe at least $1,000 and if your withholdings are the lesser of 90% of your current year tax due or 100% (or 110% if you have a higher adjusted gross income) of your prior year tax liability.
Do I need to make estimated tax payments to the IRS?
While TurboTax will automatically generate these vouchers if required, it's up to you if you use them. Since you have pension checks, it may be worthwhile to increase your tax withholdings on those payments to ensure you are having tax withheld on the income as you are paid. To do this, you will need to contact your pension provider to update the amount withheld for both your federal and state.
You can use a Form W-4P to help you determine how much you should be withholding. Depending upon your state of residence, they will have a similar form. Please see the links below for additional information to guide you.
Estimated Taxes: How to Determine What to Pay and When
Pension and annuity withholding
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