Estimated Tax Calculation Options

[davidmloch]

TTax  has a form called Estimated Tax Options. I want to use the option "100% of Tax on Your 2023 Estimated Taxable Income" but the worksheet seems to be a calculated number. I click on it but no worksheet comes up. How can I get the worksheet to  calculate  "100% of Tax on Your 2023 Estimated Taxable Income" and have TTax output the  quarterly estimated tax payment vouchers?

[firstchillzilla]

At the bottom of that page, there's a quick zoom for the Estimated Taxes and Form W-4 worksheet.  On that worksheet, you'll see columns for 2022 actual and 2023 Expected.  Fill in your expected numbers for 2023 and the sheet will calculate the estimated taxes.

[MichaelG81 · Accepted solution]

Yes, you can do your estimated taxes for next year, if you are at risk of paying estimated taxes sometimes the form pops up automatically if not, follow these steps to populate the form for next years estimated tax payments; also outline below:

When you prepare your 2022 return, we'll automatically calculate your 2023 estimated tax payments and prepare 1040-ES vouchers if we think 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 doing this in Step-by-Step mode:

1. With your tax return open, search for 1040-es (be sure to include the dash) and select the Jump to link
2. Answer No to the question Do you want to change your W-4 withholdings for 2023?
3. Answer the questions about things like your 2023 filing status, income, and deductions
4. 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

@davidmloch 

[zapyoo]

Follow up question on Estimated Tax Options for my State Taxes:  

I am a new resident to Arizona and am filing Part-Year State form for 2022 and have $0 taxes due.   I am retired and will have no earned income and no tax withholdings.  I have paid estimated federal and state taxes since I retired.   

I am presented with four options for Arizona 2023 estimated taxes:

1. 100% of actual 2022 tax ($0)
2. 100% of 2023 estimated tax ($blah)
3. 90% of 2023 estimated tax (90% of $blah)
4. No estimates

Options 1 and 4 result in no estimated tax payments.  

Can I "get away" with not paying AZ 2023 estimated taxes (without penalty or interest) because I just happen to have a $0 tax starting year in 2022?  

[HopeS]

You must make estimated payments for Arizona income tax purposes if your Arizona gross income for both the prior year and the current taxable year exceeds $75,000 ($150,000 for married taxpayers filing a joint return). If you have enough taxes withheld from retirement funds, you are fine and don't need to file estimated tax payments in Arizona. 

Since you had no tax due in 2022, it appears you had sufficient withholding tax and therefore would not need to send estimated tax payment for 2023 if your tax situation remains similar to 2022.

See the link below for Arizona for more information:

Estimated Tax Payment Form

@zapyoo 

[1597980]

I expect my 2023 income will be a lot less than in 2022.  The estimated tax for 2023 was automatically calculated for me based on 2022 when I had a large capital gain from sale of rental property. Can I simply delete the estimated tax option form?  Will I be subject to estimated tax payment requirement in 2023 even though my income is much lower but will still owe taxes?  If so, how do I calculate the estimated tax then? Is investment income (interest/dividends) charged at a different tax rate than earned income?

Thank you!

[RobertB4444]

If you owe more than a thousand dollars next year you will indeed have penalties charged to you if you don't make estimated payments.  You can absolutely adjust your estimates for next year to reflect the income you expect to actually receive instead of using the income from 2022 to calculate it.

In your federal return go to 'Other Tax Situations' and then scroll down to 'Form W-4 and Estimated Taxes' and then click start.  Tell the system that you do not want to adjust your W-4 but that you do want to review your estimates.  Enter in what you think your actual income will be for 2023 and it will adjust the estimated payments for you.

@1597980 

[1597980]

Thank you!  This helps!

[66481]

The following instruction for preparing/printing 1040-ES forms did not work for me; and I spent 20 minutes on a phone call with a TurboTax representative and she was unable to help me?!

"When you prepare your 2022 return, we'll automatically calculate your 2023 estimated tax payments and prepare 1040-ES vouchers if we think 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 doing this:

1. With your tax return open, search for 1040-es (be sure to include the dash) and select the Jump to link
2. Answer No to the question Do you want to change your W-4 withholdings for 2023?
3. Answer the questions about things like your 2023 filing status, income, and deductions
4. 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"

I am using the 2022TurboTax Premier desktop program

[DoninGA]

@66481 

Click on Federal Taxes

Click on Other Tax Situations

Scroll down to Other Tax Forms

On W-4 and estimated taxes, click on start

[66481]

Thank you...perfect!  Not sure why the Turbo Tax rep that I spoke with did not know or advise this?