Hi,
I follow the trust but verify (also want to understand!) method for turbotax use. I am working on my estimated taxes for 2021 and I want to basically use the simple 100% (110% for high adjusted gross income) of 2020 tax as a basis for estimating 2021 payments and making sure I don't get any underpayment penalties.
Turbotax calculated my 2021 federal estimated for me, but the numbers are way lower than my actual tax payments for 2020. I'm guessing this has to do with self employment tax as most of my tax liability seems to be the self employment tax?
How do I calculate 110% of my 2020 tax payment for my 2021 estimated payments? Do I exclude some portion of self employment tax or is there another formula I'm missing or not finding? Thank you!
