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GB-Mike
Returning Member

1040-ES 35% of this year's tax

Why does Turbo Tax suggest I pay only 35% of this years total tax as next year's estimated tax?

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4 Replies

1040-ES 35% of this year's tax

do you have withholding or did you enter what you expect next year's income to look like?

 

GB-Mike
Returning Member

1040-ES 35% of this year's tax

Turbo Tax generates its own suggestion in the form of 1040ES 1 ... 4.  The total amount Turbo Tax suggests I submit during 2022 is just 35% of my 2021 total tax.  I estimate I'll need to submit more than this year's total tax rather than this lo-ball estimate.  

Would I have to pay a penalty for under payment if I followed TurboTax's suggestion?

GB-Mike
Returning Member

1040-ES 35% of this year's tax

Why isn't the default value this years total tax in four equal parts?

GB-Mike
Returning Member

1040-ES 35% of this year's tax

I'm not sure what "do you have withholding" means.  I did pay withholding during 2021.  I did not enter what my next year's income would be.  I don't think Turbo Tax asked that. I picked the items to enter rather than let TurboTax walk through its entire dialog.

 

Why isn't the default value for 2022 this years total tax in four equal parts?

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