All Posts

Yes, you can take your annual interest amounts and divide by 12 to arrive at the amount per month. If you know you will sell any stocks during the year you can make your 15% -20% estimated at that time without the need to calculate the unknown right now.    If you do have a large gain during the year, you may need to use the annualized method to eliminate penalty for underpayment next year.  See the information below for additional information to eliminate any underpayment penalty next year.     Generally, you can avoid the penalty if your total timely estimated payments and withholdings are greater than or equal to the lesser of: 90% of the total tax after credits for the current year, or 100% of the total tax after credits in the prior year See one exception below. You can also avoid the penalty if the amount you owe is less than $1,000 as long as any estimated tax payments you made are timely.   Note: High-income taxpayers. If your adjusted gross income (line 11 of your 2023 Form 1040) is greater than $150,000 (or $75,000 if you're married and file a separate return from your spouse), you can avoid a penalty by paying at least 110% of your total tax from the prior year.   TurboTax does not allow blank forms however you can change the numbers once they are printed and you are also allowed to pay your estimated tax at the IRS Payments site online.

No, that is not necessary for personal items sold at a loss.  You can enter the information from the 1099-K once.     If you had done tests of the 1099-K prior to the final choice of personal items sold at no gain or loss, check that there is nothing for eBay in the Self- employment or Investments and savings section related to it. It might be easier to delete your 1099-K entry, self-employment, and investment entry if they appeared. ‌Then Review to clear all errors, and then re-submit the 1099-K information.   Here is how you should report this in TurboTax Online: Within your tax return go to the magnifying glass icon on the top right, type 1099-K and select the Jump to 1099-K link in the search results Choose Add a 1099-K The next screen will ask "Which type of income your 1099-K is for?" choose Personal item sales, then Continue Enter the information from your 1099-K After you choose continue, the next screen will show "Personal Item Sales". Here is where you choose "All items were sold at a loss or had no gain"        

In the state income tax return, you are given the option to select full-year resident / part-year resident / nonresident taxpayer.   In TurboTax Online, select My Info.  There you are given the choice to report your Resident state or states and Other state income.    

I am having a similiar issue but not with a W2 form but with a 1099-R form from my IRA company. I get a message saying that the amount in box 14 "State tax withheld"  can be less than or equal to the amount in Box 1 "Gross Distribution".  Box 14 is blank and Box 1 is $10,000 .  I placed zero in the blank Box 14 but the same error still showed.   Users should have the option of forcing the efile for an error message they deem erroneous.         

Update on this: I went back into TurboTax online where the PTET credit is claimed and there is the following message:   Note: If you're filing by mail, be sure to attach Schedule(s) VK-1 to your tax return showing your share of the PTET credit. If you're planning on e-filing your Virginia return, mail in your documentation only after Virginia has issued you a "Missing Documentation Letter".   So there you have it. No need to send in your VK-1 if you're filing electronically until/unless the Virginia Department of Taxation asks you for it.

The best way to do this is to preview the return before filing.  To see the forms in in TurboTax Online you can print the tax forms to pdf to view. If you are still working on your return and have already paid, per:  Can I print a copy of my return in TurboTax Online before I file it?:   "Open or continue your return Enter your return by selecting Continue or Start on Tax Home. Select Tax Tools from the menu, then Print Center (on mobile devices, tap in the upper left corner to expand the menu). Select Print, save, or preview this year's return, and follow any additional instructions. Once your PDF opens in Adobe Acrobat Reader, select the printer icon. Make any adjustments in the Print window and then select Print."

Yes, it is suggested an amended return be filed after the original has processed.  Of course tax is due April 15th whether the original or amended return has been processed by the IRS.    With that said, the result of an amended return (Form 1041X) is always based as if the original refund or tax payment was completed.  If the original showed a refund, and the amended shows tax due, the tax due is after the refund is claimed.    There is always a chance that the IRS will find your error on your original return and hold up the original refund.  If that happens, you will get a letter from the IRS explaining the error they found, the resolution the IRS suggests, and asking if you agree.    Either way, you don't want to have tax due after April 15th if you can help it. Better to over-pay and request a refund later rather than be late paying. You could monitor with "Where's my refund" and make the payment the earlier of - once the refund is issued, or April 15th.     

The Annualization Worksheet is to help you with your withholdings throughout the year and is not filed with your tax return.  If you had a large Roth distribution in 2024 as a one-time event, take your annual income without the distribution, divide by four for each quarter, to see whether you need to withhold more on your regular income so as not to incur an underpayment penalty next year.    You can choose to let the IRS figure your penalty (if any, in your case) and bill you.     Here's more info on Form 2210.    @rhtt6293   

Me again. Just a follow up. I just received three letters from the IRS today that state that they accepted my explanation and will waive the 50% excise tax. The three letters have three different tax years, so I guess I will be receiving more letters back for each tax year that I send them. If three have been waived, all of them should be waived since the explanation was the same for each year.