I was told just recently, last year, that I have to do quarterly taxes, why?
I have 2 W2 jobs, and I pay my taxes each year, so why do I have to pay quarterly taxes?
I thought that was for only people with companies that had to do that?
Please clarify.
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@cinike16 wrote:
I was told just recently, last year, that I have to do quarterly taxes, why?
Possibly because you have insufficient withholding from your W-2 jobs.
Check with your employers.
I don't understand? Insufficient with holding, what is that? and how do I know or not know what I have to with hold? I with hold more at both companies when I put my, what's it called W4? or what ever that is to hold back an extra 200 per pay check. Also my income changes, its not always the same so how am I supposed to pay this "tax" up front when I don't know what my income is going to be at the end of the year
Who said you have to do quarterly payments? Did you have a big tax due last year? Or get any 1099NEC income? Did you had a big one time large income like if you took a IRA or 401k distribution? Was your withholding enough to cover the tax on your 2023 return? If Turbo Tax printed out the 4 1040ES estimated slips those are optional to pay .
You must make quarterly estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).
Hello,
Estimated quarterly taxes are for anyone that would have a balance due after withholding is taken into account.
You may have had low withholding, rental or self employed income or investment income that causes the balance due. You can also receive a penalty for having a balance due and not paying estimated payments.
Since you are paid on a w-2 you can increase you federal tax withholding or pay estimates to avoid a balance due and possible penalties.
Here is an article on how and when to pay estimated taxes https://turbotax.intuit.com/tax-tips/small-business-taxes/estimated-taxes-how-to-determine-what-to-p...
I paid over $8K in taxes last year and TurboTax did my taxes and I was livid that I had to pay that much.
I had no 1099, I didn't take anything out of my IRAs, or anything close to that...
I don't understand what that means what you are referencing, I don't know if I'll have to pay more than $1k in taxes, my guess is yes, since no one here at Turbo Tax has done any type of advising on what to do, and I had them my taxes last year and no one said nothing to me... and I got hit with like a $200 fee for not paying my quarterly taxes, which is ridiculous because no one told me about that either...
@cinike16 wrote:I don't know if I'll have to pay more than $1k in taxes, my guess is yes........
Adjust your withholding so that you owe less than $1,000 when you file your return.
That quite a lot to pay just for W2 income. Especially if you had extra withholding. You didn't have any other income like a lot of interest or dividends? Maybe you entered something wrong on your tax return. How was your 2022 return? What changed? I would compare 2023 with 2022 line by line and see what changed or if you missed anything or entered something wrong.
Oh my, I'm sorry you had such a large bill. It's an unpleasant surprise. The best way forward is to make sure you don't have this happen again.
Of course I'm not sure but I'm guessing you haven't worked two jobs for more than a year? The reason I say this is many people with multiple employers tend to get caught by an unexpected balance due. This also happens to spouses where one earns less than the other. This also happens when someone stops a job and starts a new job. What's going on here?
When you look at the withholding tables (circular E), they arrive at an income tax bracket for you based on your likely standard deduction (and when they were still in play - your exemption). They calculate your estimated annual income based on that weekly, bi-weekly or monthly paycheck. The withholding table for just one of these employers cannot predict what your income will be at the other job or any other sources of income. It only calculates withholding for your one job. When you work a second or third job, your income tax bracket changes from 10% or 12% up to 22% or higher but the one employer withholds as if you are still in the lower tax bracket. This is why, when working more than one job, you need to withhold extra from both jobs.
Based on your circumstances, if you did owe $8K federally, you can withhold an extra dollar amount from each job per month of $1,000. We only have four months left in this year so that would make up $8K. Or you can make the recommended estimated tax payment for this year. But for 2025, I would highly recommend adjusting your W4 withholdings if you continue to work for two or more employers.
Cheers
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