Estimated tax amount

Forum|Forum|6 years ago
March 8, 2020
3 replies
13 views

I had completed 2019 turbotax entry and got federal tax amount payment due $2,868 and 2020 estimated payment $1,896 X 4 = $7,584. I also asked my CPA to prepare my 2019 tax return and got federal tax due amount $2,866 and 2020 estimated payment $419 X 4 = $1,676. I am wondering why turbo tax shows this much $5,908 difference to 2020 estimated tax. Estimated tax 1040-ES amount turbotax showing is reliable?

SteamTrain

Level 15

Tough call on that. The TTX 1040ES forms for 2020 really do depend on careful entry of the various values you enter into their preparation.

Some of the $$ you enter during their preparation involve your "guesses" as to certain types of income you enter. So your CPAs estimates of what will happen in 2020, could be way off from what you put into the tax software. ...and...if you didn't actually go thru the 1040ES-specific interview for their preparation...then of course. they could be wayyyy off.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

mm5140Author

Level 2

I carefully compared line 1 through line 23 on Form-1040, Schedule 1, Schedule 2 and Schedule 3 amount between Turbo Tax and CPA tax return however, difference is only $18.0. In your reply " ...if you didn't actually go thru the 1040ES-specific interview for their preparation...then of course. they could be wayyyy off." Turbo Tax does not tell which section is 1040ES-specific interview. Would you tell me which section on "Wages & Income", "Deductions & Credits" and "Other Tax Situations" that makes Form-1040, Schedule 1, Schedule 2 and Schedule 3 almost same amount but makes 1040ES amount "wayyyy off"? I would like to know what was wrong entry.

VolvoGirl

Level 15

It's just an estimate. We don't know how Turbo Tax calculates the 1040ES.

Turbo Tax is very conservative and doesn't want you to owe too much next year. They might have printed out if you got a one time large income this year. Like if you took a IRA or 401K distribution. You can ignore them. You might want to adjust your withholding at work so you won't owe too much next year.

You can figure the estimates by going to

Federal Taxes

Other Tax Situations

Other Tax Forms

Form W-4 and Estimated Taxes - Click the Start or Update button

say No to W4 and it will take you to the Estimate section