Author Topic: Estimated Tax Payment Forms TurboTax: Why?  (Read 1575 times)

brooklynmoney

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Estimated Tax Payment Forms TurboTax: Why?
« on: March 18, 2015, 05:44:06 PM »
So I pay a lot in taxes (33% bracket) including the alt minimum tax, but I still always get a refund. I max out 401K, make charity donations, pay a healthy five-figure state tax, mortgage interest, etc. Last year I got a 2K federal refund. This year was only $500 because of those pesky capital distros from the Vanguard mutual funds. Anyway, when I filed, TurboTax spit out estimated tax payment forms for this year. Why would I need to do that when I'm still getting a refund? I know a lot of people in my sitch make estimated tax payments, but I take zero deductions and get a very healthy amount taken out of each paycheck. I'm going to ignore this for now.

firewalker

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Re: Estimated Tax Payment Forms TurboTax: Why?
« Reply #1 on: March 18, 2015, 06:28:42 PM »
No need if your witholding is keeping you out of penalty territory.

TN_Steve

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Re: Estimated Tax Payment Forms TurboTax: Why?
« Reply #2 on: March 18, 2015, 08:11:05 PM »
T.Tax shoots those out for us every year.  I ignore them.  If you can hit the safeharbors by withholding wage income, it is a far better way to go--and you are free to adjust the W-4 allowances throughout the year to avoid refunds, or at least to avoid too big of a refund.

Just keep an eye on things throughout the year to avoid penalties for underwithholding if your income fluctuates.

brooklynmoney

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Re: Estimated Tax Payment Forms TurboTax: Why?
« Reply #3 on: March 18, 2015, 10:21:27 PM »
Thank you! I will look into the safe harbor and make sure I am meeting them.