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Posted by Ernie Klein on April 19, 2006, 12:18 am
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>> I recently finished preparing my taxes using TurboTax
>> online. I get a federal refund of about $1200 for 2005.
>> However, TurboTax prepared quarterly estimated tax vouchers
>> for 2006, according to which I have to pay about $2000 of
>> estimated tax every quarter (!!!). I didn't pay any
>> estimated taxes in 2005. How is that possible that I have to
>> pay it in 2006??? Moreover, about $8000 seems to be an
>> overkill. This doesn't seem to make any sense. Could it be
>> some kind of glitch in TurboTax? I don't expect anything to
>> change in 2006, i.e. I'd again expect the same federal
>> refund in 2006 without paying any estimated taxes in
>> advance. Why on Earth could TurboTax decide that I have to
>> do it? And how mandatory is it under these circumstances?
> You must have told the program something for it to believe
> that you will need to make estimated tax payments.
I don't know if that is the case. I have been using TT
forever (_not_ the online version though). This year my
taxes ran OK, my daughter #1 return ran OK, but for some
reason daughter #2 return insisted on printing estimated
state (not federal) vouchers for $83/quarter even thought
she was to receive a (very) small state refund.
I double and triple checked the numbers and the sanity of
the numbers on the return and all were good. I don't know
why or what triggered TT to print those estimated tax
vouchers, but since the return itself was OK, I don't intend
to spend any time or effort to figure out the source of the
glitch since I am done with taxes for this year. I will
merely note that it occurred.
> But, the software isn't the law, nor is it the government.
> So, feel free to not pay what the software recommends if you
> are confident that there will not be any additional income
> or reduction of expenses / deductions in 2006.
That is true of course, but when the software prints out
totally unexpected and clearly incorrect estimated tax
vouchers, one cannot wonder if there is an error somewhere
on the return that caused the vouchers to print, or a
software error that may cause other incorrect calculations
on the return.
I for one don't like to ignore unexpected output from
software -- it may result in errors that effect more than
just the printing of the unexpected forms. However in my
case, the input was fine. It appears to be a minor software
issue.
Like I said, I don't use the online version but I would
guess that they are both based on the same engine.
--
-Ernie-
"There are only two kinds of computer users -- those who have
suffered a catastrophic hard drive failure, and those who will."
Have you done your backup today?
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