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Skip Estimated Tax Payments?

Turbo Tax calculated Estimated Tax payments for 2017 based on my income for 2016. My income will be less in 2017. If I increase my withholding in 2017 to cover my taxes can I skip the estimated tax payments in 2017 and not get in trouble with the IRS?

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Level 7

Skip Estimated Tax Payments?

Yes, if you are certain that you will not have the same income OR will have more withholding, you are not REQUIRED to pay estimated taxes, but if you are short next year, the IRS will apply a penalty. 

Generally, a penalty is assessed if you owe $1,000 or more in taxes. The penalty will not be assessed if you 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.

In the TurboTax, we help you with the calculations: https://ttlc.intuit.com/questions/2584228-can-turbotax-calculate-next-year-s-federal-estimated-taxes

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4 Replies
Level 7

Skip Estimated Tax Payments?

Yes, if you are certain that you will not have the same income OR will have more withholding, you are not REQUIRED to pay estimated taxes, but if you are short next year, the IRS will apply a penalty. 

Generally, a penalty is assessed if you owe $1,000 or more in taxes. The penalty will not be assessed if you 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.

In the TurboTax, we help you with the calculations: https://ttlc.intuit.com/questions/2584228-can-turbotax-calculate-next-year-s-federal-estimated-taxes

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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Level 1

Skip Estimated Tax Payments?

My spouse has not worked in 2019 and our income is significantly less that was estimated when we filed our 2018 return.  We made estimated payments on time in April and June.  Based on these facts can we adjust downward our estimated tax payments for the rest of the year or maybe stop them completely?

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Level 15

Skip Estimated Tax Payments?

Yes the estimates are optional to pay.  They didn't get sent with your tax return and the IRS is not expecting them.

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Level 1

Skip Estimated Tax Payments?

thank You.  That just confirms what I thought I knew.