Do I need to pay the estimated taxes for 2024 after filing my taxes and paying federal taxes for 2023? TurboTax generated 4 form 1040-ES vouchers due to sell of a rental.

Forum|Forum|2 years ago
April 11, 2024
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I sold a rental property in 2023. I reported the sale based on the information on Form 1099-S in TurboTax. I ended up paying $9914 in federal taxes via Direct Debit.

After reviewing my tax returns, I noticed TurboTax said I have to make 4 estimated tax payments for 2024 and attached the 1040-ES vouchers for reference.

TurboTax Online

Best answer by SUZNB57

The estimated taxes are based on your income from 2023. If you don't expect your income to be as high this year as it was last year then no you don't need to pay the estimated taxes. Sounds like your income was higher than usual because of the sale of a property but won't be that high again.

MinhT1

The vouchers are printed out, assuming that you would have an income in 2024, similar to the one in 2023.

If you won't have the same income, you can either lower the amount of estimated taxes, or skip paying them.

These vouchers aren't reported to the IRS.

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Opus 17

Employee

Turbotax calculates estimated payments for 2024 assuming that 2024 will be similar to 2023, and to reduce the possibility of owing a penalty for not having enough withholding or payments. If you know your income and taxes will be less, you can ignore the suggested payments or make a different payment amount based on your own analysis of your situation.