I have a question regarding the Estimated Tax. My income did not changed a lot from last year, but now after I completed the filling and printed the forms I noticed that I have four vouchers for estimated tax and one for my owed tax. So I have to pay $1415 the amount I owe (from 1040 line 76) and the estimated taxes? It shows that I have four payments of $351. It is correct or I did something wrong on my filling? What’s happening if I don’t make these payments? Just a note, last year I owed and paid $1667.

Thank you for your advice,

Marcel

You may want to check on your federal/state withholding. If it's not a good enough percentage of your income, you may be having to pay them the difference. If that's what it is, you can have it changed to be with held at a higher rate, so that hopefully next year you won't have to pay back so much. That's the problem I had last year, and I had the state pull out more money this year, and I actually had a refund. Other than that, I couldn't tell you--but you could always go consult with a tax guy-they should know.

The tax software automatically produces quarterly statements if you have to pay over $1,000.

If you check, you will see that you are paying an under-withholding penalty. Making the quarterly payments allows you to avoud this penalty.