Yes, that is correct. You would make your "prepaid taxes" or estimated tax payments quarterly (every three months) to the IRS.
You may send your estimated tax payments with Form 1040-ES by mail, or as you referenced, you can pay online, or even using your phone.
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.
Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
You will enter your estimated taxes in TurboTax as follows:
- If you are using TurboTax Online you can either use this link estimated tax payments or you can type "estimated taxes" in search bar and select the link "Jump to estimated taxes"
- If you are using TurboTax Desktop you will type "estimated taxes" in search bar and select the link "Jump to estimated taxes."
The TurboTax program will walk you through entering your estimated taxes.
Click here for "Where do I enter my estimated tax payments"
Click here for "How do I make estimated tax payments?"
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