topic I have a personal TurboTax account. Just started sole proprietorship and need to do quarterly taxes. Do I need to open a new/separate TT account? in Get your taxes done using TurboTax

I have a personal TurboTax account. Just started sole proprietorship and need to do quarterly taxes. Do I need to open a new/separate TT account?

Jill24 — Thu, 25 Mar 2021 18:16:20 GMT

Re: I have a personal TurboTax account. Just started sole proprietorship and need to do quarterly taxes. Do I need to open a new/separate TT account?

DoninGA — Thu, 25 Mar 2021 18:18:27 GMT

Business income and expenses for a sole proprietor are entered on a Schedule C which is included with and is part of your personal tax return.

Re: I have a personal TurboTax account. Just started sole proprietorship and need to do quarterly taxes. Do I need to open a new/separate TT account?

Jill24 — Thu, 25 Mar 2021 18:29:24 GMT

That's great for end of year, but not for quarterly estimated taxes. What I need to know now is where to go on TT to file quarterly estimated taxes for my freelance business, both federal and state. Quarterly is due soon.

Re: I have a personal TurboTax account. Just started sole proprietorship and need to do quarterly taxes. Do I need to open a new/separate TT account?

DoninGA — Thu, 25 Mar 2021 18:37:27 GMT

@Jill24 wrote:

That's great for end of year, but not for quarterly estimated taxes. What I need to know now is where to go on TT to file quarterly estimated taxes for my freelance business, both federal and state. Quarterly is due soon.

If you want TurboTax to assist you in creating Forms 1040-ES for 2021 estimated taxes, see this TurboTax support FAQ - https://ttlc.intuit.com/community/tax-payments/help/can-turbotax-calculate-next-year-s-federal-estimated-taxes/01/26437

Or you can use the worksheets in the IRS Form 1040-ES instructions - https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Re: I have a personal TurboTax account. Just started sole proprietorship and need to do quarterly taxes. Do I need to open a new/separate TT account?

Jill24 — Thu, 25 Mar 2021 18:53:05 GMT

Already filed 2020 taxes about a month ago. Plus, my income was completely diff last year--had a regular job, got laid off, then unemployment. Using 2020 to calc 2021 estimated taxes for my new sole proprietorship doesn't make sense here.

Can someone provide an answer vs. just sharing links? Thanks!

Re: I have a personal TurboTax account. Just started sole proprietorship and need to do quarterly taxes. Do I need to open a new/separate TT account?

Mike9241 — Thu, 25 Mar 2021 19:16:03 GMT

there should be an estimated tax worksheet for computing 2021 using 1 of the standard rules.

1) 100 % of 2020 tax (110% if adjusted gross income over $150,000

2) 90% of 2021 tax - good luck trying to figure our what this will be

3) the annualized installment method - don't know if your version of turbotax handles this

you figure your actual income for the 1st 3, then 5, then 8 months and then the whole year

you annualize the income x4, x2.4 x1.5,x 1

you figure the tax on this income and also any other taxes such as self-employment taxes and any credit subject to what ever limitations there are

you multiply your total taxes for each period by 22.5%,45% 67.5% and 90%

then you subtract from this any withholding for the period and any prior tax payments, what's left is the estimated tax payment for the quarter.

you may want to use form 2210 schedule AI

of course, if you make an error you could be subject to penalties.

option 1 is the safest because that's based on line 24 of the 2020 return.

1/4 each quarter.