Without knowing the details of your 2018 income tax return, it would
be difficult to make any assessment of whether you need to make 2019 estimated tax
payments.
Many taxpayers are
finding that their refunds are smaller than expected or that they owe taxes
this year.
In 2018, the
withholding tables used by employers were adjusted to put more money
into wage
earners' paychecks. This was done without fully taking into account the
impact
of many tax law changes that were also taking effect in 2018. The
consequence
is that many taxpayers are seriously under-withheld. To avoid this,
TurboTax, based on individual circumstances, has been generating
estimated tax payments which are larger than in previous years, not by
changing the algorithm, but simply recognizing that if one source of tax
payments (withholding) has decreased and the tax bill has not, the
difference must be made up through estimated tax payments or there will
be a risk of underpayment penalties next year.
If you are
certain that you will not need the increased tax payments, you are
always free to print a revised set of vouchers, simply cross-out the
printed amount and handwrite the amount you are depositing, or make no estimated tax payments at all.
