I had to pay a shortage for 2016. Do I need to pay quarterly in 2017 using the coupons that printed when I printed my tax forms?

[plamonica123]

I heard from a family member that since I had to pay a shortage for taxes in 2016 that I had to pay quarterly taxes in 2017 using the coupons that printed when I printed my 2016 tax forms.  I haven't done that in the past, so I was checking if I needed to pay quarterly taxes in 2017?

[AnthonyC · Accepted solution]

It depends on if you believe you will owe again in 2017.

The program produces these forms (coupon vouchers) as a convenience for you to make the payments.  You are not locked into those payments.  The program will produce them automatically if you owed tax as the government requires you to withhold enough tax to cover your tax liability or make estimated tax payments.  If you don't have enough withholding and you don't make estimated tax payments, then the IRS can charge you with an underpayment penalty.

If you owed tax this year because of a one-time event and you won't owe next year, then you can decline to send any payments.  You can also decline to send the payments even if you will owe tax next year, but you may be assessed an underpayment penalty.  You can also adjust the amount of the payment at any time (higher or lower depending on anticipated income during the year) and you can pay directly online.  You can view more information about this penalty and estimated taxes in general at the links below.

https://www.irs.gov/taxtopics/tc306.html 

https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

https://www.irs.gov/payments