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Why am I getting a 1040 ES form created and told to prepay taxes? We pay taxes on each paycheck from our job. Never had this before. Can someone help?

Any info on why they are suggesting us to prepay with vouchers? Never had this happen before.
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3 Replies

Why am I getting a 1040 ES form created and told to prepay taxes? We pay taxes on each paycheck from our job. Never had this before. Can someone help?

did you owe on your 2021 return? if you owe over $1,000 Turbotax will prepare protective estimates so you don't owe a penalty for 2022.

 

 

the rules 

to avoid penalty your timely estimates and withholding must equal 90% of current year tax (2022) or 100% of prior-year (2021) tax (110% if your 2021 AGI was over $150,000)

also if you owe less than $1000 there are no penalties

 

Why am I getting a 1040 ES form created and told to prepay taxes? We pay taxes on each paycheck from our job. Never had this before. Can someone help?

No we are getting a refund. Our income did go up a decent amount from last year. Would that matter? 

Why am I getting a 1040 ES form created and told to prepay taxes? We pay taxes on each paycheck from our job. Never had this before. Can someone help?

They are basing it on your total income and doesn't grasp that you are a w-2 employee and that there is withholding each paycheck. Unless you have a large amount of other forms of income (besides a W-2), you can disregard the vouchers.

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