We have HH government savings bonds which will mature in May of this year (2024). We'll be receiving payment on those bonds and will have to pay federal income tax on the deferred interest, which is quite a large amount. Should we pay quarterly estimated taxes on the deferred interest beginning with April of this year, even though we won't receive the bond cash-out until the middle of the year? And is there anything we need to send to the IRS indicating that we'll be making quarterly payments or do we just begin making the payments on their website? Is there a way in TT 2023 to estimate what those payments might be, or do we just use the 1040ES worksheet?
Making an estimated tax payment would be a good idea -- and, the larger the amount of tax you'll owe, the better of an idea it is. The IRS levies underpayment penalties if you don't withhold or pay enough tax on income received during each quarter.
You can use the IRS website to arrange your payments, but TurboTax can also help you do what you need. The 1040ES worksheet is helpful, but using TurboTax can make the process much easier.
See the TurboTax Help articles Do I need to make estimated tax payments to the IRS? and Can TurboTax calculate next year's federal estimated taxes? for more information.
You wouldn't need to notify the IRS of your intention to make payments.
Making an estimated tax payment would be a good idea -- and, the larger the amount of tax you'll owe, the better of an idea it is. The IRS levies underpayment penalties if you don't withhold or pay enough tax on income received during each quarter.
You can use the IRS website to arrange your payments, but TurboTax can also help you do what you need. The 1040ES worksheet is helpful, but using TurboTax can make the process much easier.
See the TurboTax Help articles Do I need to make estimated tax payments to the IRS? and Can TurboTax calculate next year's federal estimated taxes? for more information.
You wouldn't need to notify the IRS of your intention to make payments.
Thanks very much for your response! The opportunity to calculate next year's estimated taxes in the manner described in the article either never came up or we overlooked it while completing our tax return for 2023.
To prepare estimates for next year you start with your current return, but be careful not to change anything. If you can't get back into your return, Click on Add a State to let you back into your retun.
You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say NO to changing your W-4 and the next screen will start the estimated taxes section.
Or Go to….
Federal Taxes or Personal (Deskop H&B)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button
The 1040ES quarterly estimates are due April 15, June 17, Sept 16 and Jan 15, 2025 Your state will also have their own estimate forms.
Or you can pay directly on the IRS website https://www.irs.gov/payments
Be sure to pick the right kind of payment and year.....2024 Estimate