Should we pay an estimate for 2019 income taxes since we had to pay $785.00 when we filed our federal income taxes?

[DanielV01 · Accepted solution]

It depends.  If you want to ensure that you avoid a penalty next year, you want to make sure you pay in enough to cover your tax liability this year.  (For higher incomes, you must cover 110% of this year's tax liability).  

For instance, if you paid in $3215 through withholdings and credits, and owe $785, your total tax liability is $4000.  To avoid a penalty next year, you must make sure you pay in at least $4000 of total tax.  You can do so through your withholdings, credits you may be entitled to, estimated payments that you have made, or a combination of all of the above.  

The easiest method when available is withholdings.  The taxes are being automatically deducted from your paycheck and you don't have to worry as long as enough tax is taken.  

Credits can be hard to predict.  Be careful about including too many credits when trying to figure out your tax due.  

Estimated payments is your last measure.  Sometimes, you really only need to figure having more withholdings taken out.  But, to play it safe, you may want to make estimated payments.

As long as you are paying in taxes regularly (at least on time every quarter through estimates), and are within $1000 of your total tax due, you will not owe a penalty.

For more information, please see this FAQ:  https://ttlc.intuit.com/replies/3301730