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Why are estimated payment options included in my return for next year

 
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Why are estimated payment options included in my return for next year

If you owed taxes on your 2019 tax return, TurboTax will print estimated tax payment forms for you to use to keep from owing on your next year's return. You can just ignore them if you don't think you need to pay estimated taxes.

 

Filers can sometimes owe underpayment penalties if they don't withhold enough or pay estimated taxes during the year. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.

GiseleD
Expert Alumni

Why are estimated payment options included in my return for next year

Did you have a balance due this year? If so, TurboTax is offering that option so that you can make quarterly payments to avoid a balance due for 2020. 

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Why are estimated payment options included in my return for next year

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.

 

If you are receiving a refund or low tax due and TurboTax prepared the vouchers then your tax liability was probably reduced by credits. Your Tax Liability is the amount on 1040 line 16. It is the tax you owe on your income. But you might qualify for credits that can reduce your tax due or even give you a refund. Credits are on Schedule 3.

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