2023 estimated taxes

[gourada1]

I have filed my personal 2022 return.  In 2023, I have incorporated a small business, and from what I am reading I need to pay estimated taxes.  Can I generate those estimates with TT2022?  If not, is there an alternative within TT?

[bluedeb · Accepted solution]

Yes, you can create your 2023 estimated tax payments with TurboTax.  

How do I calculate my estimated taxes?

In most cases, to avoid a penalty, you need to make estimated tax payments if you expect to owe $1,000 or more in taxes for the year—over and above the amount withheld from your wages or other income. In some cases, though, the $1,000 trigger point doesn't matter.

• If your prior year Adjusted Gross Income was $150,000 or less, then you can avoid a penalty if you pay either 90 percent of this year's income tax liability or 100 percent of your income tax liability from last year (dividing what you paid last year into four quarterly payments). This rule helps if you have a big spike in income one year, say, because you sell an investment for a huge gain or win the lottery. If wage withholding for the year equals the amount of tax you owed in the previous year, then you typically wouldn't need to pay estimated taxes, no matter how much extra tax you owe on your windfall.
• If your prior year's Adjusted Gross Income was greater than $150,000, then you'll need to pay either 90 percent of this year's income tax liability or 110 percent of last year's tax liability.

How do I print estimated tax vouchers for my 2023 taxes?

You can print next year's estimated tax vouchers (Form 1040-ES) in your 2022 program:

1. Sign in to your TurboTax account, then open your return by selecting Continue or Pick up where you left off in the progress tracker
2. When your return is open, search for 1040-es (be sure to include the hyphen) and select the Jump to link in the search results
3. Answer No to the question Do you want to change your W-4 withholdings for 2023?
4. Answer the questions about things like your 2023 filing status, income, and deductions
5. Eventually, you'll come to the Print Vouchers? screen. Answer Yes and we'll include your 2023 1040-ES payment vouchers when you print a copy of your return later
   • If you get the No Payments screen instead, you don't need to make 2023 estimated payments based on what you entered
   • To check that the forms were added to your return, you can go to Tax Tools in the left menu, then Tools. In the pop-up, select Delete a Form. From here, you should see Form 1040-ES in the list of forms included with your return. You won't actually delete it, but this allows you to confirm it's there