To contribute to a traditional IRA, you, and/or your spouse if you file a joint return, must have taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self-employment. Compensation for purposes of contributing to an IRA doesn't include earnings and profits from property, such as rental income, interest, and dividend income, or any amount received as pension or annuity income, or as deferred compensation. In certain cases, other amounts may be treated as compensation for purposes of contributing to an IRA, including certain alimony and separate maintenance payments received, certain amounts received to aid in the pursuit of graduate and postdoctoral studies, and certain difficulty of care payments received.
See IRS Publication 590-A for more information on IRA requirements.
There are a number of tools you can use to calculate your estimated taxes for 2023.
TurboTax's TaxCaster is available without opening your return and will estimate your total taxes for 2023. This will help you determine the amount you should pay each quarter. See the discussion in this thread for more information.
When you prepare your 2022 return, TurboTax will automatically calculate your 2023 estimated tax payments and prepare 1040-ES vouchers if the program determines that you may be at risk for an underpayment penalty next year.
You can also calculate your 2023 estimated taxes and generate the payment vouchers by following the steps below. You will need to wait until your filed return is processed (payment acknowledged / refund received) before reentering your return. See here for the process to open/amend a return that has been filed.
To calculate estimated taxes and prepare Forms 1040-ES:
- With your tax return open, search for 1040-es (be sure to include the dash) and select the Jump to link
- Answer No to the question Do you want to change your W-4 withholdings for 2023?
- Answer the questions about things like your 2023 filing status, income, and deductions
- Eventually, you'll come to the Print Vouchers? screen. Answer Yes and we'll include your 2023 1040-ES payment vouchers when you print a copy of your return later
You can also use the IRS Withholding Estimator to calculate amounts to be withheld from wages.
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