topic Estimated Taxes in Get your taxes done using TurboTax

Estimated Taxes

MSchaf72 — Tue, 02 Mar 2021 02:05:15 GMT

I sold a house in 2020 and had to pay Capital Gains tax. This was quite and increase in income over 2019 and resulted in a large tax payment for 2020. So Turbo Tax created an estimate for taxes in 2021 based on my income including the house sale (which is a one off) 2020 tax liability. However my income for 2021 will be less than it was in 2019. Since this was a one time boost in income based on a sale of property and will not occur in 2021 I shouldn't have to pay tax based on an income I won't receive. What do I do to fix my 2020 return so that it does not include estimated taxes?

Re: Estimated Taxes

BillM223 — Tue, 02 Mar 2021 02:23:56 GMT

Even if TurboTax prints four 1040-ES forms, you don't actually have to use them.

They are simply created as a convenience for you if your 2021 income is about the same as your 2020 income (which you say it won't be).

If in 2021 you believe that your withholding (or whatever you do) on your W-2(s) will more than cover your tax, then you don't have to make any estimated tax payments at all.

Re: Estimated Taxes

easeybob — Sat, 13 Mar 2021 01:45:37 GMT

Turbo tax did not bring up questions for me on estimated federal taxes for 2021. I already filed for 2020. How do I now handle preparingES 2021

Re: Estimated Taxes

MaryM428 — Sat, 13 Mar 2021 19:43:11 GMT

Go back into your return. After you file, you need to click the Add a State button to get back into your return.

Follow these steps:

Sign into your TurboTax account using a browser

Federal
Other Tax Situations
Other tax Forms
Form W-4 and Estimated Taxes
Skip the W-4 question
On the next screen Estimated Taxes for 2021 select Prepare Now
Make your adjustments and click to Print Vouchers with Your Return
Go to Tax Tools
Print Center
Print your 2021 vouchers

Here is a TurboTax Article on Estimated Taxes

@easeybob