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Returning Member
posted Feb 4, 2023 4:39:13 PM

Why do I have an "Estimate Payments to Make for Next Year's Return" with a schedule and it saying I should pay an additional $800 quarterly next year?

My W4 is setup correctly. I had some taxable gambling winnings in 2022 so I owe taxes for it. But why is it saying I need to send in vouches with $800 quarterly in 2023? What is this? I've never done estimated tax payments before so I don't understand why I need to now. Without the gambling winnings, I would have gotten a refund.

0 5 825
5 Replies
Level 15
Feb 4, 2023 4:43:58 PM

The estimates are optional to pay. They don't get sent to the IRS with your return so they won't be expecting them. If you are receiving a refund or low tax due and Turbo Tax prepared the vouchers then your tax liability was probably reduced by credits. 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 if you want. They are just a suggestion.

Returning Member
Feb 4, 2023 5:50:55 PM

They definitely need to make that more clear.

Also, TT is supposed to be intuitive. It knows I had gambling winnings, it should have recognized that and not put in the estimated tax payment vouchers based on gambling winnings. Way to scare someone!

Level 15
Feb 4, 2023 5:59:35 PM

You probably skipped that section of the interview but the program does address it. 

Returning Member
Feb 4, 2023 6:03:56 PM

I did go through it when it asked and I chose no, I wasn't concerned about them nor did I make them last year.

That's why it was a shock to see them on the printed one.

Regardless, my point still stands. With all the tax changes in the last few years, I thought maybe it was something new but TT should be more intuitive than that for what they charge.

 

Level 15
Feb 4, 2023 6:07:51 PM

See this TurboTax support FAQ for calculating 2023 estimated tax payments - https://ttlc.intuit.com/turbotax-support/en-us/help-article/estimated-taxes/turbotax-calculate-next-...