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Why TurboTax suggests me to pay estimated tax?

In 2023, I only owe less than $500 federal tax and it is far less than 10% of my final federal tax.

 

Why TT suggests me to pay over $4,000 estimated tax (over $1,000 per quarter)?

 

I think I will just ignore this...

 

Thank you for comments.

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1 Reply
DavidD66
Expert Alumni

Why TurboTax suggests me to pay estimated tax?

It's impossible to say why the program suggested you pay estimated tax payments without some details of your return.  TuboTax automatically include four quarterly 1040-ES vouchers with your printout if you didn't withhold or pay enough tax this year. This is to head off a possible underpayment penalty on next year's taxes.  You may get these vouchers if you're self-employed or had an uncharacteristic spike in your income this year. For example, you sold stock or took a large distribution from your retirement plan.  You're not required to make estimated tax payments; its just a suggestion based on the info in your return. If you feel they're not needed for next year's taxes, you can shred (ignore) them.

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