In 2021 through 2023 tax years, I received a federal refund. And yet, for each of those years, TurboTax has 1040-ESs.
I'm baffled as to why TurboTax would think that I need to pay estimated taxes, when I'm getting refunds in excess of the 1040-ES amount. That tells me I didn't really need to pay the estimated taxes.
Those estimated tax payment vouchers print out for a convenience, and you do not have to use them.
TurboTax will automatically include four quarterly 1040-ES vouchers with your printout if you didn't withhold or pay enough tax this year. This is just to head off a possible underpayment penalty on next year's taxes.
You also may get these vouchers if you're self-employed or had an unusual spike in your income this year. For example, if you sold stock or you took a large distribution from your retirement plan.
You're not required to make estimated tax payments; TurboTax is we're just suggesting it based on the info in your return.
If you feel they're not needed for next year's taxes, you can shred them.
Click here for additional information about estimated payments to the IRS.
To clarify, did you actually make estimated tax payments in 2021-2023?
I made estimated payments for the first 2 years. For the current year, I haven't made estimated payments.
Those estimated tax payment vouchers print out for a convenience, and you do not have to use them.
TurboTax will automatically include four quarterly 1040-ES vouchers with your printout if you didn't withhold or pay enough tax this year. This is just to head off a possible underpayment penalty on next year's taxes.
You also may get these vouchers if you're self-employed or had an unusual spike in your income this year. For example, if you sold stock or you took a large distribution from your retirement plan.
You're not required to make estimated tax payments; TurboTax is we're just suggesting it based on the info in your return.
If you feel they're not needed for next year's taxes, you can shred them.
Click here for additional information about estimated payments to the IRS.