I printed my filed tax documents, but noticed a MD Form PV also printed. Why would I need to pay estimated quarterly payments, when I have never needed to before?

[DMarkM1]

If you had a tax bill with the state of MD on your 2020 return, then TurboTax may suggest quarterly payments.  It's up to you to elect to make those payments. 

If the amount you owed MD created a penalty for you, then making estimated tax payments or having your state withholding increased will reduce/eliminate that penalty.  

[s-camp205]

By a “tax bill” do you mean if I owed the state any money? Because upon completion of our taxes on TurboTax, the state refund was $524 in our favor. So I am confused as to how these quarterly vouchers come into play.  I claim “0” with the state as it is, so having my company change withholdings doesn’t seem to be an option either. However I did make roughly $30,000 more this year than the year before. Is it possible these vouchers are intended to be a preemptive payoff towards possibly owing come next years tax season if my income were to be more than this past year? I hope this makes sense, this isn’t my realm of expertise by any means. I appreciate your input. 

[BillM223 · Accepted solution]

Form PV is for paying tax due, estimated taxes, and extensions. See the 2020 Payment Voucher.

You are correct to wonder why it printed. If you got a refund, you don't need a payment voucher for either your return or for estimated tax payments (it would be very unusual for TurboTax to think that you needed to pay quarterly estimated tax payments if you had a refund). And you are not even thinking about an extension.

Check form 502 line 45 to make sure that it is zero or blank and scan the rest of your return to make sure that there is not a request to pay anything. Actually, read the filing instructions to see if it says anything about paying anything.

If not, just put the PV aside.

[s-camp205]

Form 502 Line 45 is blank, and after a thorough review it doesn’t state anywhere that anything is owed. I guess I can just assume it was a unique mishap, and ignore the vouchers. I appreciate your time. 

[ThomasM125]

The program may ask you if you want to pay estimated taxes in the following year, as your tax situation my change year to year. So, you may have inadvertently pressed the wrong response. Typically, if you have not paid estimated taxes in the past, owe no money with your tax return and don't anticipate being behind in taxes in the next year, you don't have to pay estimated taxes.  

[Xteamplayer]

Hi - I was very confused when I did my taxes last year and the MD Form PV printed out.  I searched all over the place and figured I should pay the quarterly payments even though I had never ever heard of that form in the past.  The IRS cashed my checks and now I'm wondering what to do this year.  Is there any way to include those amounts in my taxes for 2020?  Do I get that money back?  I wrote 4 checks and never heard a work so I'm very confused and mad since I'm guessing I didn't have to pay anything.  Why would TurboTax include that Form in the first place without an explanation?  Thank you!

[ReneeM7122]

Yes, you should include the estimated payments that you made last year in your 2020 tax return.  To get to that section, type estimated taxes in the search box from the Federal tab, and then Jump to estimated taxes.  The software will ask you for the amounts and the dates. 

You might get money from your estimated payment back if they caused your tax liability to go down.  If you had to pay estimated taxes last year, it would have been due to not having enough withholding taken from your paycheck or a similar reason.  As long as that is not an issue again this year, you will not be required to make the estimated payments again.  TurboTax will help you figure that out.

Here is a TurboTax article about estimated taxes.

@Xteamplayer

[Xteamplayer]

Thank you so much for your rapid response!  Very helpful.