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I've used TurboTax for numerous years. Last year, it had me make significant estimated tax payments during 2024. In doing my taxes, TurboTax didn't remember or ask??

Additionally, after entering the estimated taxes, I still owe a penalty. I thought if I did what TurboTax recommended, I would not be subject to a penalty.
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1 Reply
AnnetteB6
Expert Alumni

I've used TurboTax for numerous years. Last year, it had me make significant estimated tax payments during 2024. In doing my taxes, TurboTax didn't remember or ask??

The 2024 estimated payment vouchers that TurboTax generated with your return are based solely on the information that you have entered into your 2023 tax return unless you go through the section to enter a more realistic picture of your expected 2024 income.  So, if your 2024 return is essentially the same as your 2023 return, then the suggested estimated payments should put you in good shape to avoid an underpayment penalty.  

 

If you had more income in 2024 than you did in 2023, then the estimated payments may not be enough.  

 

Also, even though the estimated payment vouchers were included with your tax return printout for the 2023 return, you are not required to make those payments and that information is not reported to the IRS.  Since the payments are not required to be made, the TurboTax program has no knowledge about whether you made the payments or not in order to specifically ask you to enter that information the following year.

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