turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Should I make estimated tax payments in 2023?

I currently will not owe any taxes in 2023. However I do have Solar energy tax credits left over from last year and in order to use them I will need to create taxable income. Last year I converted money from my Traditional IRA to my Roth IRA. The taxes generated were paid by part of my solar energy tax credit and the estimated tax payments that I made were refunded. If I do not make any estimated payments this year and do a Roth conversion using my solar energy tax credits to pay my 2023 taxes, will not having made any estimated taxes in 2023 cause me problems with the IRS? I made estimated tax payments last year (before I purchased the solar electric system late in the year) because I planned to make a Roth conversion prior to purchasing the solar electric system.
2 Replies

Should I make estimated tax payments in 2023?

If your total 2023  tax will be less than $1,000, then estimated tax payments are not required.

@Insagn 

Should I make estimated tax payments in 2023?

@Insagn and that $1000 is net of the tax credits. 

 

so for example, if the tax generated from the Roth conversions is $3,000 but the unused solar credits are $2500, no requirement to pay estimated taxes as the tax is under $1000. 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies
v