Here are the rules for avoiding an underpayment penalty:
Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.
Here are the rules for avoiding an underpayment penalty:
Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.
Why am I having to provide estimated tax payments by quarter? I have never paid estimated tax payments in my life.
If you have enough federal taxes withheld from your pay or other sources of income, you don't need to pay quarterly estimated taxes. If you under withheld for 2018, TurboTax will create estimated payment vouchers for you. You are not required to use them. If you plan to increase your withholding for 2019 so that you are not under withheld at the end of the year, just destroy them if you don't need them.