1040 ES/V - why did my wife receive one?

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DarkHelmetII
Posts: 166
Joined: Mon Jul 24, 2017 12:25 pm

1040 ES/V - why did my wife receive one?

Post by DarkHelmetII » Fri Mar 30, 2018 12:00 pm

My wife just received a 1040 ES/V form with vouchers in the mail. Why would this be the case?

1) Both of us are straight W-2 employees. No self-employment.
2) Wife does have a race horse as a business but income is small ~ hundreds of dollars on that.
3) We are high income ~ $500k+ and in 2016 owed 10k+ taxes last year as withholding was insufficient. Will be even more this year in 2017.


Any clue as to why they IRS would send this? Based on history that they expected we are withholding too little over the year and this is to make up the difference?

Let me know if additional specifics are required to help generate responses.

Thank you.

Spirit Rider
Posts: 9185
Joined: Fri Mar 02, 2007 2:39 pm

Re: 1040 ES/V - why did my wife receive one?

Post by Spirit Rider » Fri Mar 30, 2018 12:20 pm

Large tax underpayments, substantial income not usually subject to withholding (interest, dividends, capitial gains, tc...) in conjunction with self-employment could be triggers.

The underpayment from 2016 should have caused you to increase your withholding in 2017. Which apparently you did not or at least not enough.

The receipt of the 1040 ES/V does not mean you need to make estimated tax payments in 2018, but you apparently need to increase your tax payments through withholding and/or estimated tax payments. Unless, taxable investments are highly variable, I prefer the former.

lstone19
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Re: 1040 ES/V - why did my wife receive one?

Post by lstone19 » Fri Mar 30, 2018 9:11 pm

As I recall from the past, if you have to pay with your 1040, the IRS automatically sends you vouchers to use. Since they’re printed with your information, it probably prevents errors that might occur on hand-written vouchers. They’re merely for convenience.

TropikThunder
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Re: 1040 ES/V - why did my wife receive one?

Post by TropikThunder » Fri Mar 30, 2018 9:56 pm

lstone19 wrote:
Fri Mar 30, 2018 9:11 pm
As I recall from the past, if you have to pay with your 1040, the IRS automatically sends you vouchers to use. Since they’re printed with your information, it probably prevents errors that might occur on hand-written vouchers. They’re merely for convenience.
It's true that on one occasion I had Turbotax generate them when I owed tax that year, but they printed with my return paperwork. I didn't get them in the mail.

lstone19
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Joined: Fri Nov 03, 2017 3:33 pm

Re: 1040 ES/V - why did my wife receive one?

Post by lstone19 » Fri Mar 30, 2018 10:01 pm

TropikThunder wrote:
Fri Mar 30, 2018 9:56 pm
lstone19 wrote:
Fri Mar 30, 2018 9:11 pm
As I recall from the past, if you have to pay with your 1040, the IRS automatically sends you vouchers to use. Since they’re printed with your information, it probably prevents errors that might occur on hand-written vouchers. They’re merely for convenience.
It's true that on one occasion I had Turbotax generate them when I owed tax that year, but they printed with my return paperwork. I didn't get them in the mail.
It's been many years but I distinctly recall getting vouchers from the IRS after submitting a return with a payment due. It was probably in the days before e-filing. OP did not say how he filed - maybe it only happens when you submit a paper return.

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CAsage
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Re: 1040 ES/V - why did my wife receive one?

Post by CAsage » Fri Mar 30, 2018 10:32 pm

I just got a fat envelope from the IRS... which I sat down before I opened. It contained envelopes and forms for four 1040-ES payments and a 1040-V voucher.... none of which I need this year. I think they just send out a standard packet if you pay estimated taxes or ever owe on a return. I already got my refund for 2016, so .... threw the whole lot out.
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Leesbro63
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Re: 1040 ES/V - why did my wife receive one?

Post by Leesbro63 » Sat Mar 31, 2018 2:46 pm

I got the packet even though I also got a refund that arrived before the packet. I have made estimated payments in the past so I assume this is the trigger.

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