Why Do I have to pay quarterly taxes if it just Personal?

Forum|Forum|1 year ago
August 28, 2024
3 replies
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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.

Anonymous_

Employee

@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.

cinike16Author

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

VolvoGirl

Employee

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).

cinike16Author

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...

Anonymous_

Employee

@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.

John-H2021

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-pay-and-when/L3OPIbJNw

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