Finished federal return, all income received had tax withheld by retirement plan administrators (reflected on 1099Rs). Final fed tax owed only $291. The print preview function includes 1040ES forms for 2021, requiring $551 quarterly pymts. Why?? Is this a program bug?? Been using TurboTax for over 20 years never had this problem before.
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Turbo Tax is very conservative and doesn't want you to owe next year. They might have printed out if you got a big one time increase in income. like if you took a IRA or 401K Withdrawal or had a big stock gain. They are optional to pay. They don't get sent in with your tax return so the IRS won't be expecting them. You can ignore them.
Generally you'd use the 1040 - ES if you're self employed or if you have significant other income from which there's no withholding, requiring you to pay quarterly estimated taxes to avoid underpayment or late payment penalties.
Thanks, The federal withholding from all sources during 2020 was just over $18k which was submitted by plan administrators through out the year. Don't understand why the 1040ES are required for 2021. If I were to make these suggested quarterly payments I would overpay next year's federal taxes by about $2k (which I do not plan to do). My question is why is the tax program generating the 1040ES forms?
Turbo Tax is very conservative and doesn't want you to owe next year. They might have printed out if you got a big one time increase in income. like if you took a IRA or 401K Withdrawal or had a big stock gain. They are optional to pay. They don't get sent in with your tax return so the IRS won't be expecting them. You can ignore them.
Thanks for the response,
I needed to prepare 1040ES forms for2021. Turbo tax failed to run calculations. Now what?
You can still go back into your account and "force" the TurboTax system to generate 1040ES forms/stubs for you. Click on the magnifying glass icon at the top right of the screen and enter "1040ES" and the instructions for generating for 2021 will be right there for you.
All it gave me was old QandA that doesnt help me find the form I need. Thanks for trying. If you could try it for yourself, maybe the system has changed and let me know. thanks again.
Follow the steps outlined below to get TurboTax to generate Form 1040-ES payment vouchers for next year. When you search, make sure you are all the way inside of your return. If you search from the Home Page, you will not get the desired results.
When you prepare your 2020 return, we'll automatically calculate your 2021 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 2021 estimated taxes and generate the payment vouchers by doing this:
thanks for your advise.
I could not find the 1040-es or control number for postmates whereas they gave me only a 1099-nec
turbotax said if I select the expensive package it would pay for itself. well it didn't
I owe turbotax $170 and the feds more. I may get a small amount back from state but working 2 jobs to survive and I still owe taxes means I loose. :(
You get the 1099NEC for Income you received. That is self employment income. You enter it into your tax return on Schedule C .
The 1040 ES are quarterly estimated payment slips you fill out to send the IRS extra payments for NEXT year to cover the self employment tax since they don't take out any withholding like from W2 wages. The 1040ES are optional to pay.
1099NEC is self employment income. To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. How to enter self employment income
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.
The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15. The SE tax is in addition to your regular income tax on the net profit. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a. Turbo Tax automatically calculates the SE Tax and Adjustment.
Here is some IRS reading material……
IRS information on Self Employment
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center
Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf
Publication 535 Business Expenses
Turbo Tax will calculate the 1040ES estimated payments
You must make quarterly estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).
How to make the Estimated payments
https://ttlc.intuit.com/community/tax-payments/help/how-do-i-make-estimated-tax-payments/00/25875
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