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Estimating next years taxes using this years numbers. Why would tax due be different?
Plan on doing IRA rollovers in 2025. Want to make sure we pay enough in estimated taxes. I filled out all of our 2024 tax return and then made a duplicate return to play with. In the duplicate I added in a fake 1099R for $230,000 and completed the return. This was to mimic what we plan on having in 2025. I then went into the Estimator to figure out how much we would need to pay each quarter. Since we already added in the fake 235,000 in for 2024, in the estimated under 2024 the numbers were already supplied. I copied the same numbers in under the 2025 column. 2024 column matches 2025 column through out the estimator process. When I get to the end it says based on my entries it estimated my 2025 taxable income to be $2,450 LESS than my 2024 income. It gives me the actual numbers but they are $2450 less so my total tax due is $929 less. How can this be? I called TT support and they say they have no reported problems on this and it's working properly..Not giving an error. Suggested I pay for Live Tax Advice. This seems like a pretty simple process. Any idea what I could be doing wrong? Shouldn't these numbers at the end of the estimator process be the same if I entered the same numbers in both columns? Appreciate the help! Thanks