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How did you receive this message? Was it in an email? I've never heard of anything like this coming from TurboTax. Are you sure this was a legitimate email? Do not send any personal information or money to whomever sent you this email.
Can you please provide more info?
I saw it on my tax home screen of the turbotax program.
@thalia_y I don't use the Online platform, so I've never seen that screen. Thanks for clarifying.
Yes, I'd say that the program is giving you a heads-up of what you "may" owe when filing for 2023. I can't see the amount, but if it's more than $1000, you may want to consider making estimated tax payments for 2023. These payments are made quarterly.
In case you're unfamiliar with making estimated tax payments, please see the info I'm sharing below.
How do I make estimated tax payments?
I thought a turbo tax expert would answer the question.
This is confusing.
As Champ Kat suggested, this is an informational message from TurboTax to alert you to a possible tax balance due next year. This is an estimate based on your current year return. You may wish to ignore the message or consider paying estimated taxes during the year so you owe less next year. Your tax situation may change a great deal between now and then, so use your best judgement.
This TurboTax tool may be helpful in planning your tax payments next year: TurboTax TaxCaster
See also: Do I need to make estimated tax payments to the IRS?
@mathtutorer3141 The Community forum is staffed by TurboTax employees, tax experts, and volunteers (that's me). The "Champions" in the Community are invited to participate in this program based on expertise, not only on taxes but also on the use of TurboTax programs. Thank you, @PatriciaV for your reply!
I have this on mine, too! I am getting a refund this year.... the estimated balance due is a couple hundred more than the refund is this year. Nothing is really changing or has changed in the last couple years for me.
Is this a glitch? Should I be worried??
I received relatively large federal and state refunds for 2022. However, the federal refund was close to last year's, and my state is being kinder to its elderly this year. Turbotax projected a HUGE "estimated balance due" in 2023 with no explanation. In years past, it would provide a printout of quarterly payment slips to use if it thought you'd need them. It's very confusing because it doesn't explain why I could owe many thousands more next year.
The IRS rule is that you must pay taxes as you go for the current tax year with either withholdings or estimated tax payments. As you stated, you received a large refund for the Federal and State returns then you had adequate withholding for the tax year. The projection of the estimated tax due would be based on the tax liability for the previous year.
To avoid an underpayment penalty, the estimated tax payments for the year would need to equal 100 percent of your previous year's taxes. Or if your last year's adjusted gross income was more than $150,000 (or $75,000 for married people and filing separate returns last year), you will be required to pay 110 percent of the previous year's taxes.
Again, if you have adequate withholdings, you will not be required to make estimated tax payments.
I got the same message. I am getting a refund of about 4,000 but it says my estimated balance due for 2023 will be $23,000. I do not understand why it is saying this. We are not self employed.
TurboTax is giving you the estimated tax you will owe before withholdings and estimated payments in case you would like to make changes, especially if you are expecting an increase in income. It is not an actual balance due.
Ok.. that makes sense! Scared me to death, lol!
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