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After completing our taxes, TurboTax automatically included quarterly vouchers. Anybody have an idea why? We owed money but we're both W-2 wage earners. There's no reason for us to pay quarterly IN ADDITION to Uncle Sam taking taxes out monthly. Why did TurboTax do that?!
If you've got an answer, I'd like to hear it. THANK YOU!
I'm not sure, but did you have to pay an underpayment penalty? If you did, then maybe Turbo Tax figured that you would want to pay quarterly taxes in addition to your W2 withholding to avoid the penalty last year.
Some income sources (interest from bank accounts, stock dividends, capital gains, etc.) do not withhold taxes which means you owe tax at years end. If the amount is enough you may have to pay the penalty for not withholding enough to cover the tax burden of those incomes.
I'm not sure, but did you have to pay an underpayment penalty? If you did, then maybe Turbo Tax figured that you would want to pay quarterly taxes in addition to your W2 withholding to avoid the penalty last year.
I looked from beginning to end to see if I was penalized for the amount I owed this year but no, I did not see an underpayment penalty. Our interest from investments were not significant amounts. <shrug> I'm scratching my head!
Quote:
Some income sources (interest from bank accounts, stock dividends, capital gains, etc.) do not withhold taxes which means you owe tax at years end. If the amount is enough you may have to pay the penalty for not withholding enough to cover the tax burden of those incomes.
You know, after doing research I came up with the same conclusion. I'm already at "single status" for my W-4 and I believe my husband should be, too. Jesus, I guess our next option is to have 0 exemptions instead!
We always have to pay extra taxes every year, although not enough to be penalized. Turbotax always prints quarterly vouchers for us. We'd rather pay a lump sum once a year in April, but Turbotax probably assumes most Americans would rather space their payments out throughout the year.
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The US is a pay-as-you-go tax system with quarterly tax bills. When you're an employee, your employer is making those quarterly payments on your behalf. If you had investment income, for example, you'd be responsible for quarterly payments in order to avoid underpayment penalties. I think that's why TurboTax kicks out the quarterly vouchers.
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