What are the 4 next year's 1040-ES payment vouchers for?

[aabidhasan]

I have filed my tax return for 2021. I have $258 federal tax due. I have provided my bank info so that the amount can be directly paid from my bank. I have a sufficient balance in my account as well. But I found there are 4 payment vouchers 1040-ES each with an amount of $800. What are these vouchers for? My understanding is these are for my next year's tax returns. What if I'm overpaying for next year? Is there a way to not include this in my current tax return?

[ee-ea]

If  you are paying enough in advacne to avoid penalties for  2022 taxes toss the 1040-ES

[LenaH]

When you prepare your 2021 return, TurboTax automatically calculates your 2022 estimated tax payments and prepares 1040-ES vouchers if the program thinks you may be at risk for an underpayment penalty next year.

For 2022, you would have to pay an underpayment penalty if you owe more than $1,000 in taxes (after taking withholding into account) and:

 * Your taxes withheld don't cover at least 90% of your 2022 tax liability, or

 * Your taxes withheld aren't at least 100% of the tax shown on your 2021 tax return. Your 2021 tax return must cover all 12 months.

The estimate forms (1040-ES) do not get e-filed with your return. If you do not want to pay the estimates, you are under no obligation to. It is just a suggestion based on an estimate for the 2022 tax year. 

@aabidhasan

[VolvoGirl · Accepted solution]

The 1040ES are estimates for next year. The 1040ES quarterly estimated tax payments DO NOT get sent to the IRS or state with your return. They are optional to pay. Turbo Tax is very conservative and doesn't want you to owe too much next year. They might have printed out if you got a one time large income this year. Like if you took a IRA or 401K distribution. You can ignore them. You might want to adjust your withholding at work so you won't owe too much next year.

[MuHu]

I received 2 letters from the irs and one was by certified mail. They said we owe $5300. I made $3660 with 3 payments using those ES vouchers. I thought they were for repayments for what we owe for 2022. Now  we owe $400 in interest. The payments are for next year's taxes. I didn't want to pay for 2023 ahead of  time!! Hope we can resolve this. These vouchers shouldn't be part of the tax return. They are confusing. I almost had my home put on a levy.  Very irritating!!!

[VolvoGirl]

Sorry you still need to pay the 2022 tax due.  You can enter the estimates for 2023 into your 2023 return to get credit for them.

To enter Federal or State Estimated Taxes Paid, including a state estimated payment made in January for the prior year, go to

Federal on left or at top (Personal for Home & Business)

Deductions and Credits at top

Then scroll way down to Estimates and Other Taxes Paid

Estimated Taxes - click the start button

[xmasbaby0]

Oh no---did you misunderstand and think those 1040ES vouchers were some sort of payment plan for you to pay your 2022 tax due?  They were not for paying your tax due for tax year 2022.  You were supposed to pay 2022's tax due in full by April 17, 2023.  Those vouchers were for paying estimated tax due for tax year 2023 to help you avoid an underpayment penalty and a big tax due bill when you prepare and file your 2023 return in 2024.   You are being charged interest because you did not pay for the 2022 tax due on time.    When you print out vouchers---the one that says 1040V is the one to use to pay the tax due for the tax return you are filing, and the 1040ES vouchers are for paying estimated quarterly payments for the upcoming year---and they are optional.  You can use them to make estimated payments if you choose to.

As VolvoGirl mentioned.....make sure when you prepare your 2023 return you enter those estimated payments that you made and sent in with those 1040ES vouchers and you will get credit for them on your 2023 return.

Or....if you ever do in fact want to have a payment plan with the IRS....you have to apply for the plan:

Apply Online for a Payment Plan