I have just completed my 2017 taxes using TurboTax. Because of some unexpected investment activity that will occur ONLY in 2017, I under withheld my 2017 taxes. Because of this, TurboTax is significantly over estimating the 2018 1040ES quarterly payments and the four estimated printed tax vouchers for 2018.
I want to "trick" TT to print the 4 forms with a more reasonable estimate. Any suggestions? Or can I just use the 4 forms and cross off the printed quarterly estimate and write in my own?
If you haven't already filed your return, revisit the estimated payment calculation interview. On the Review Your Estimates for 2018 screen, answer Yes when asked Do you want to adjust your income or deductions? Then when you continue through the interview you'll be able to make adjustments so the voucher amounts will be in the ballpark.
To revisit the estimated payment calculation interview, follow the instructions in this FAQ: How do I print estimated tax vouchers for my 2018 taxes?
Thank you Linda. That helped a lot.
A couple of comments:
1) I have been using TurboTax Deluxe for probably 15 years or more, and I have never seen that interview.
2) That interview is not particularly designed for my situation but with my own thoughtful contributions, it will get me where I need to be.
3) My 2017 return required me to pay a large amount instead of my usual small refund. What happened was in 2017, my wife's social security kicked in with no withholding, and she also liquidated a bunch of investments with no withholding (capital gains), and this was also my first year with RMD (with withholding). So I will be using this interview to eliminate the capital gains item and also using "other income" to adjust for SS and for RMD. For 2018, it recommended really large quarterly payments because of 2017.
4) It looks like TurboTax does not offer recommendations on the RMD? I don't think it knows enough about my portfolio to provide one.
@Williamt13555 You might try using the free TaxCaster tool instead of the estimated payment calculation interview. Regarding calculating your RMD, your plan administrator should be able to provide the information you need. The IRS has Required Minimum Distribution Worksheets, too, or you could search for an RMD calculator online, but you'll need some details about your retirement plan to get started. It's standard for the plan administrator to withhold 10% from an RMD unless the recipient indicates otherwise. (I'm not sure this fully addresses your RMD concerns but I hope it helps,)
I have seen that interview many times! Also you have the option to pay based on 100% of 2017 taxes, or a percentage based on your expected 2018 taxes. You exact options may depend on your income. In some cases, that option may not appear on the screen. However if you go to the estimated tax worksheet in Forms view, you will see the different options and the amounts that would be due as estimate tax under each option. When in Forms view, be careful not to select the option that is only available for farmers and fishers - it can be easily checked by accident, and of course it's one of the lowest payment levels if not the lowest.