Question

Estimated Taxes

Forum|Forum|4 years ago
April 11, 2022
3 replies
0 views

In 2020 we sold a rental house and had to pay capital gains. Turbo Tax set up for 2021 estimated tax installments for pre paying my Federal and State taxes. I was ok with it since I was going to sell two more rental homes. I am all done with these large capital gain situations. How do I have Turbo Tax NOT set up estimated tax installments for 2022?

Not A Product Question

H

HelenC12

There's no way to stop TurboTax from printing out estimated tax forms. It's automatic. If you don't need them, just shred them.

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VolvoGirl

Employee

The 1040ES quarterly estimated tax payments DO NOT get sent to the IRS or state with your return. They are optional to pay. Turbo Tax is very conservative and doesn't want you to owe too much next year. They might have printed out if you got a one time large income this year. Like if you took a IRA or 401K distribution. You can ignore them.

Carl11_2

Employee

While the program will generate the four 1040-ES forms like it or not, there is no requirement for you to use them. You can throw them away if you like.

Just be aware that if you don't pay enough tax on your income periodically throughout the year, then you may be assessed an underpayment penalty at tax filing time Not only by the IRS, but also by the state if your state taxes personal income.

You already make periodic payments on your W-2 income, as that is withheld each pay period by your employer and sent to the IRS, as well as the state if applicable. But for just about all other types of income, tax with holding and payment is your responsibility.