Estimates are included when the tax balance due is greater than $1,000. It is possible your return includes Form 2210 to report an underpayment penalty. This would have generated the estimated payments for 2021 to "penalty proof" you for next year. The payments are not required and can be paid in any amount, but you should be aware of the IRS expectation for tax remittance. Form 2210 is used when there is an underpayment penalty. To go to Form 2210 in TurboTax, in the search box enter, underpayment of taxes and select the Jump to link in the search results. The IRS requires taxpayers to pay tax as the income is earned, either 100% of the prior year tax or 90% of the current year tax to avoid penalties and interest. (For taxpayers with adjusted gross income greater than $150,000, these percentages are 110% and 100%, respectively) If your income was not received evenly through the year, you have a chance of decreasing any penalties by reporting when it was earned. Answer Yes when you get to the Annualized Income Method screen.For more information, see: What are federal estimated taxes?

Question

Why are there 2021 estimated tax vouchers included in my e-file return if I don't pay estimated taxes?

Forum|Forum|5 years ago
May 2, 2021
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KathrynG3

Estimates are included when the tax balance due is greater than $1,000. It is possible your return includes Form 2210 to report an underpayment penalty. This would have generated the estimated payments for 2021 to "penalty proof" you for next year. The payments are not required and can be paid in any amount, but you should be aware of the IRS expectation for tax remittance.

Form 2210 is used when there is an underpayment penalty. To go to Form 2210 in TurboTax, in the search box enter, underpayment of taxes and select the Jump to link in the search results.

The IRS requires taxpayers to pay tax as the income is earned, either 100% of the prior year tax or 90% of the current year tax to avoid penalties and interest. (For taxpayers with adjusted gross income greater than $150,000, these percentages are 110% and 100%, respectively)
If your income was not received evenly through the year, you have a chance of decreasing any penalties by reporting when it was earned. Answer Yes when you get to the Annualized Income Method screen.

For more information, see: What are federal estimated taxes?