Question

Why did I get estimated tax vouchers for 2021, after getting a refund for 2020?

Forum|Forum|5 years ago
February 23, 2021
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TurboTax Deluxe Online

The IRS says you need to pay estimated quarterly taxes if you expect: your withholding and refundable credits will cover less than 90% of your tax liability for 2021 or 100% of your liability in 2020, whichever is smaller.

If you owe tax this year because you had extra income that you don't expect to have next year, you may not need to pay Estimated Taxes. However, if you have Business Income that fluctuates during the year (or is expected to increase) paying Estimated Taxes may be to your benefit.

Click this link for detailed info to help you with Estimated Taxes.