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Why do I have a tax liability charge? Turbo Tax told me last year to pay quarterly tax payments but my income substantially decreased in 2021 so I did not pay.

Forum|Forum|4 years ago
February 28, 2022
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TurboTax Deluxe Online

Best answer by LeonardS

From your post, it appears that you were required to pay estimated taxes although your income decreased substantially. The U.S. tax system operates as a pay-as-you-go system. What this means is that you must pay your taxes as they occur or you will be assessed an underpayment penalty.

@pam35337

B

Bsch4477

Employee

Your tax owed was greater than estimated tax paid. If you are self employed you have to pay self employment tax even if your regular income tax is zero.

LeonardSAnswer

From your post, it appears that you were required to pay estimated taxes although your income decreased substantially. The U.S. tax system operates as a pay-as-you-go system. What this means is that you must pay your taxes as they occur or you will be assessed an underpayment penalty.

@pam35337

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