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Quarterly Tax Payment Vouchers
Posted on 3/3/13 at 1:41 pm
Posted on 3/3/13 at 1:41 pm
TurboTax spit out four 1040-ES payment vouchers with my return suggesting that I send the IRS thousands of dollars every quarter.
Why can't I just pay my taxes at the end of the year? Income varies on a year-to-year basis, and last year hit the high side. If I let the IRS eat a dick and pay my full taxes next April, what is the downside?
ETA: I paid a lot of money last year in taxes and still owed a lot on my tax return, so I am not exactly itching to send even more money just yet.
Why can't I just pay my taxes at the end of the year? Income varies on a year-to-year basis, and last year hit the high side. If I let the IRS eat a dick and pay my full taxes next April, what is the downside?
ETA: I paid a lot of money last year in taxes and still owed a lot on my tax return, so I am not exactly itching to send even more money just yet.
3
Posted on 3/3/13 at 2:22 pm to Bayou Tiger
As long as you pay in 90% of your current year tax or 100% of your previous year tax, you will avoid an underpayment penalty
This post was edited on 3/3/13 at 2:25 pm
Posted on 3/3/13 at 9:12 pm to Bayou Tiger
are you self employed? do you have a second income?
Posted on 3/3/13 at 9:48 pm to 756
quote:Neither. Does that affect the quarterly payments?
are you self employed? do you have a second income?
Posted on 3/3/13 at 9:56 pm to Bayou Tiger
You only need to remit quarterly payments if you have some income that is 1099'd. If you are W-2, I think you are good to go without quarterly payments. I'll let a tax professional give a more definitive answer.
Posted on 3/3/13 at 10:10 pm to Bayou Tiger
The only reason TurboTax would generate 1040-ES vouchers is because your withholding for 2012 was less than your 2012 tax liability. I suggest you analyze the W-4 you have on file with your employer. You may want to increase your withholding.
Posted on 3/4/13 at 11:11 am to rmc
quote:
You only need to remit quarterly payments if you have some income that is 1099'd. If you are W-2, I think you are good to go without quarterly payments.
Not true at all. If you have too little withheld on your w-2, you could get a penalty if you don't pay estimated taxes. Here's the IRS info:
LINK
Posted on 3/8/13 at 11:57 am to Poodlebrain
quote:Thanks. I just did this and it seems to be the most palatable approach. I targeted my withholdings to hit around 92% of anticipated tax due.
I suggest you analyze the W-4 you have on file with your employer. You may want to increase your withholding.
That way I won't pay the penalty for underwitholding, won't give the government an interest-free loan, and won't have too much taken out of each paycheck (i.e. if targeting 100%).
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