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April 16, 2020
Question

I have filed my returns and set up installment payments for balance due. The program also set up payments for 2020. Need help clarifying instructions.

  • April 16, 2020
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1 reply

Employee
April 16, 2020

If you owe taxes on your 2019 tax return, TurboTax will usually assume that you will also go taxes on your 2020 return and will set up estimated payments so that you will be paid in full before you file so you will not owe any late payment penalties or interest.  You do not need to make the estimated payments, and TurboTax’s formula for calculating them is not always correct.  You can also use the IRS withholding calculator or get advice from an accountant on whether or not you need to make estimated payments.  But you need to be aware that if you owe more than $1000 on your 2020 tax return when you file it next spring, you will probably be assessed penalties and interest.