topic Changing Quarterly Tax Estimates Mid-Year in Business & farm

Changing Quarterly Tax Estimates Mid-Year

5Fam — Wed, 13 Nov 2024 19:39:55 GMT

When I'm preparing my taxes, I do quarterly tax estimates and pay that amount each quarter. If my income is not in line with the projection I used to calculate the estimates, is there a way to recalculate what each quarter's payment should be in TurboTax? (If so, where do I find this?)

Also....Is the amount of the originally-calculated estimated taxes reported to the IRS? If so, what impact does it have if I change the estimate and make a different payment amount? Meaning, if my original estimates were for $1,000 and I then start paying $500, will there be a penalty?

Re: Changing Quarterly Tax Estimates Mid-Year

dev145 — Wed, 13 Nov 2024 19:50:40 GMT

Hello 5Fam,

Calculated estimated taxes via tax software do not get reported to IRS. So if you changed estimated amount during the year, IRS will not penalize you for that. IRS might charge you underpayment penalty if there was overall under payment for the full year.

If you have already filed your tax return and you are using TurboTax online, you might be able to update and generate new voucher using amend return option. We do not recommend this option since you might accidently change other info. But you can use our tax calculator to get a new estimate or you can use IRS worksheet to calculate new amount.

If you are using TurboTax desktop, then open a tax return and calculate new estimates. Just make sure to make a copy of the return before you make any changes.

Here are link to TurboTax calculator and IRS worksheet.

Tax Calculator - Tax Refund & Return Estimator 2023-2024 | TurboTax® Official

2024 Form 1040-ES

Thanks for participating in TurboTax's Ask the Expert event today. I hope this information was helpful!

**Please cheer or say thanks by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Regards,
TurboTax Expert

Re: Changing Quarterly Tax Estimates Mid-Year

VolvoGirl — Wed, 13 Nov 2024 20:08:57 GMT

No The 1040ES quarterly estimated tax payments DO NOT get sent to the IRS or state with your return. So they won't be expecting them. They are optional to pay. You can cross out the amount and write in a new amount or you can pay what you want directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2024 Estimate