Estimated Taxes

[fcromer]

Last year I used TurboTax and it printed out a schedule of Fedreal and State estimated taxes with vouchers, amounts and due dates. This year, it only did that for State taxes. I tried going back into my return to see if I'd missed something, but I can't find anything about Estimated Taxes for federal returns. Help will be greatly appreciated. Thanks.

[JohnB5677]

Federal Estimated payments may not be recommended this year.

• Did you pay the federal estimated payments?
• Did you get a significant federal refund?
• Did you prepare and give your employer a W-4 (Withholding calculation).

The underpayment penalty will be assessed if any of these apply:

• "If you don’t pay enough tax through withholding and estimated tax payments, you may have to pay a penalty."
• "You also may have to pay a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return."

To avoid the under payment penalty:

• The amount you owe is less than $1,000, after subtracting withholding and refundable credits.
• You paid 90% of the tax that you owed for the current year.
• You paid 100% of the previous year tax, (110% for higher incomes).
• If your previous year's adjusted gross income was more than $150,000 you will have to pay in 110% of your previous year's taxes to satisfy the "safe-harbor" requirement.

"Typically, underpayment penalties are 5% of the underpaid amount, and they're capped at 25%. 

Underpaid taxes also accrue interest at a rate that the IRS sets annually."

To avoid this situation it is recommended that you adjust your W-4 with your employer or pay estimated taxes.

Underpayment of Estimated Tax by Individuals Penalty

[fcromer]

Thanks for your reply!

To answer a couple of the questions...I'm retired and didn't recieve a refund. In fact, I paid almost $1K, and I've paid estimated taxes for the past few years, probably each year since retiring. I can, and will, adjust my withholding, but I'm still concerned about under payment penalties. I'm not sure how to calculate what my withholding should be. Is there a calculator out there that I should be using? Thanks again.

[LindaS5247]

You can use Form 1040-ES to calculate your estimated taxes. Form 1040-ES. There is a worksheet included to calculate your estimated taxes.

The IRS has a calculator for determining withholdings: Tax Withholding Estimator

You can use the TurboTax W-4 Withholding Calculator to help you find the right withholding when completing a new W-4. You can use this info to boost your refund or increase your take-home pay.)

Click here for Estimated Taxes: How to Determine What to Pay and When

Click here for Estimated taxes

[fcromer]

Thanks, Linda. I used the IRS Withholding Estimator and I think I'm good. But, now I've raised another question.

Last year (2024) I paid estimated taxes, but I've realized that I didn't report them on this year's form. The only taxes I reported were from my 1099-R from OPM. I don't see anywhere on anything I received from OPM or SSA that I'd paid those taxes, although I have copies of the checks. How do I track that down? Is there a form that I should have gotten that showed my estimated tax payments? I'm assuming I should be able to file an amended return to apply those tax payments??

Thanks in advance for your help.

Frank

[SusanY1]

You won't get any sort of form for your estimated tax payments.  You enter these from your own records.

You can amend your return to add them, but the IRS is also pretty good about automatically adding them to a refund if you forget, or generating a refund if you make an additional payment that isn't warranted.  For this reason, I'd wait about 3 weeks after your return was accepted to see if you get any letters from the IRS (or better yet a surprise check!)

If you do not, the amend the return to include the payments made for the 2024 tax year.  After you start the amended return process See: How to File an Amended Tax Return in TurboTax these payments go in the section for "Estimates and Other Taxes Paid", then "Estimates".

[fcromer]

Thank you, kindly, ma'am. I'll wait to see what happens.

Best wishes.