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TurboTax says it calculates 1040-es vouchers based on this years tax return, but my tax due is within $100 of amount withheld. Why the vouchers?.

My withholding is adequate to cover my tax liability.  Why did TurboTax generate estimated quarterly payments?

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3 Replies
Carl
Level 15

TurboTax says it calculates 1040-es vouchers based on this years tax return, but my tax due is within $100 of amount withheld. Why the vouchers?.

For starters, there is no law, rule, regulation, ordinance of any other requirement that says you *must* pay quarterly taxes. But if what you owe the IRS exceeds your tax liability by more than $1000 or 10% of that liability (whichever is smaller) then an underpayment penalty will be assessed. So if you feel you'll be fine for 2018 without paying quarterly taxes, throw the 1040-ES forms in file 13 and press on with life. On the other side of that coin if you feel the estimated taxes printed on the 1040-ES are to low, then you can pay more each quarter if you want. I myself don't waste my time with the paper forms and pay my quarterly taxes online directly to the IRS at http://www.irs.gov/directpay. Now my state does not tax personal income. But if yours does I'm sure your state also has a website where you can pay your state quarterly taxes online. You can probably find it with Google.

TurboTax says it calculates 1040-es vouchers based on this years tax return, but my tax due is within $100 of amount withheld. Why the vouchers?.

Thanks for the feedback.  My question was more directed to why the program generated things such things needlessly.  I noted that my withholding was adequate to cover the tax liability.  I do understand I can delete the forms and worksheets, but I am a bit leery about deleting things without fully understanding the interplay or effect on other aspects of the program and thus, the return.  So the basic question stated differently, why does TurboTax put one in the position of needing to delete unnecessary forms without guidance?
Carl
Level 15

TurboTax says it calculates 1040-es vouchers based on this years tax return, but my tax due is within $100 of amount withheld. Why the vouchers?.

I don't care what your business is, there is no way on this green earth that one can make 100% of their customers, 100% happy, 100% of the time. Just not gonna happen. I'd rather the program print out something I don't need, than I would have it not print something I *do* need. Then if I don't need it, I'll shred it.

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