2021 estimated tax

[12mytaxplace10]

i applied my 2020 refund as credit to 2021 taxes.  am i required to submit a 1040ES form for a quarter in which my estimated tax due is covered by my credit balance for that quarter--i.e. the estimated amount due is $1,500 and i have $3,000 credit available1040ES?  Where can i find the rules/procedures governing that situation (it is not discussed in the 1040ES instructions)?  thanks for the help.

[MaryM428]

The refund amount will apply to the first estimated payment until all of the refund has been used.  So using your refund towards your 2021 taxes means you will not have to make any quarterly payments until the refund amount has been exhausted.

The rule is that you must pay your taxes as you go.

If at filing time, you have not paid enough income taxes through withholding or quarterly estimated payments, you may have to pay a penalty for underpayment.

To determine whether you need to make quarterly estimates, answer these questions:

1. Do you expect to owe less than $1,000 in taxes for the tax year after subtracting your federal income tax withholding from the total amount of tax you expect to owe this year? If so, you're safe—you don't need to make estimated tax payments.
2. Do you expect your federal income tax withholding (plus any estimated taxes paid on time) to amount to at least 90 percent of the total tax that you will owe for this tax year? If so, then you're in the clear, and you don't need to make estimated tax payments.
3. Do you expect that your income tax withholding will be at least 100 percent of the total tax on your previous year's return? Or, if your adjusted gross income (Form 1040, line 8b) on your tax return was over $150,000 ($75,000 if you're married and file separately), do you expect that your income tax withholding will be at least 110 percent of the total tax you owed for the previous year? If so, then you're not required to make estimated tax payments.

If you answered "no" to all of these questions, you must make estimated tax payments using Form 1040-ES. To avoid a penalty, your total tax payments (estimated taxes plus withholding) during the year must satisfy one of the requirements we just covered.

Form 1040-ES

[micheleaey]

Hello, I hope I can ask a question here since I cannot find how to start a new question.

My Schedule C for 2020 taxes is $0 income so turbo tax is saying that I do not have to pay estimated taxes for 2021 using the "prior year exception".  I know I am making income this year and have a estimate of owning approximately $1300 in self employment tax at the moment.  If I follow the "prior year exception" rule as I have every year for the last 18 years, then I will not pay any estimated taxes during the 4 quarters and just file my taxes next year and pay into the IRS what I owe.  I am just nervous not paying anything because I always pay something and don't want the fact I will owe more than the $1000 to come back and bite me.  

Am I ok, following what TT is saying and following the "prior year exception" and paying $0 estimated self employment/federal tax for this year?

Thank you

[ToddL99]

You are "OK" following TurboTax guidance on the" prior year exception", and would not likely be subject to underpayment penalties. You would still, however, owe tax based on 2021 earnings.

You can use the "Estimated Taxes" interview to update & calculate estimated payments for2021 and generate Forms 1040-ES.

This will help you avoid a tax bill next year.

Enter "estimate in the search box and select "Go to Estimated Tax Payments" from the results. Follow the interview screens to "Review Your Estimates for 2021" and adjust your 2021 income accordingly.

See the following screenshot for aid in navigation:

[casac32]

How do I retrieve my tax info

[HeatherPLO]

@casac32:

What specific tax information are you needing?  You might try obtaining a transcript from the IRS.  To do this, please see the link here.

To access a prior year return, please reference the Help Article here.  

[casac32]

Was my taxes e-filed

[VolvoGirl]

Did you go all the way through the File tab, through the 3 steps and hit the big orange Transmit Returns Now button?

You can check your efile status here,
https://turbotax.intuit.com/tax-tools/efile-status-lookup

When you efile you get back 2 emails. The first email only confirms the transmission. The second email says if the IRS (or state) Accepted or Rejected your efile.

When you log into your account you should also see the status and if it was Accepted or Rejected, Started, Printed, Ready to Mail, etc. What does it say?

[micheleaey]

Hello ToddL99.  Yes I have done an estimate and see what I would approximately owe in self employment tax.  I currently am carrying forward business tax credits that will cover the federal taxes, I just need to do the self employment taxes.  So I could do the 4 even payments I usually make every year that corresponds to the previous year - I usually just use that safe harbor.  But because my self employment tax was $0.00 this year, my safe harbor says I don't have to pay estimated taxes and can just pay it with my tax return next year in 2022. 

I prefer not to pay the government money until I earn it, which I don't know when I will be paid since I'm a Realtor.  

I am just wanting to make sure the $0.00 from this year return will be safe harbor for next year.  I am currently estimating using the worksheet of owning approx. $1300 in Self Employment Taxes.  The Federal will be covered as I mentioned with business form 3800 credits.  

Am I safe not paying any of the estimated tax payments then this year and just waiting till I file my taxes next year?  I will owe I estimate over the $1000 but again I have nothing this year.  

If I do choose to pay the estimated I was thinking about the 60% of the 2021 estimated, but who knows what I will actually earn.  The 100% of the estimated I could do, and both are safe harbor, but the $0.00 from 2020 taxes I hope will ultimately protect me even if I choose to pay nothing for my Federal Estimated Taxes.  

I am confused on which way to go.  I can pay the lump sum, I have it and if I can I prefer to hold off paying the government until I owe it, I just don't want a penalty.

If I try to pay as I go and not in the 4 equal payments I dont want a problem with them saying i did not pay in april and then paid in june because I had a closing.  That is why I just use the last years amount and pay 4 equal payments whether it is high or low I have been safe.  It is also the easiest

Thank You,

Michele

[hacat1]

How do I report 2021 estimated tax paid by transfer from 2020 refund?

[LenaH]

To enter your 2020 overpayment applied to 2021, you can follow these steps: 

1. Open your tax return.
2. Search for estimated tax payments with the magnifying glass tool on the top of the page. 
3. Click on the Jump to estimated tax payments link at the top of the search results.
4. Click on Start next to 2020 refund applied to 2021 federal taxes
5. Follow the on-screen instructions. 

​​​​​​​@hacat1