Hi! I have been paying my quarterly estimated taxes based off the information I received when completing my taxes last year. I am expecting to have more income however this year - is there a way to estimate my taxes with the increased income so I am submitting the correct estimated quarterly payments?
Also, on tubotax it shows that it is estimating I get a return this year, with nothing else changed? Is this because I am likely overpaying on quarterly estimated taxes? Sorry if these questions don't make sense, estimated taxes just leave me very confused!
Hello @fieldman11, and thank you for the question. I am assuming that you used Turbo Tax Online based upon what you wrote in your question. When I am assisting Turbo Tax Live customers, I have them go into the interview and go first open the Federal Interview; then go to Other Tax Situations; once there then go to Other Tax Forms; and then finally go to Form W-4 and Estimated Taxes. You can then adjust your income and deductions for estimated taxes.
Do start this you can Add a State to your 2022 tax filing in the Tax Returns and Documents area of the home page you are looking at. . You will not actually be adding a state, but just opening the interview.
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Hi @fieldman11, the best way to calculate your quarterly estimated taxes is to use IRS Form 1040-ES which can be found here with instructions: https://www.irs.gov/pub/irs-pdf/f1040es.pdf
You may also find this TurboTax article and calculator useful: https://turbotax.intuit.com/tax-tips/small-business-taxes/estimated-taxes-how-to-determine-what-to-pay-and-when/L3OPIbJNw
Great question as this is one area most small business owners wrestle with. One thing you can do is put together a projection for the rest of the year for income and expenses. With this you can go back into your turbo tax account and adjust your numbers to represent 2023, see what your final tax bill is and then make payments based on that number. The internet also has a few estimators for quarterly filings you can use, see the link below to see one of them.
Quarterly Tax Calculator - Calculate Estimated Taxes (keepertax.com)
Hello @fieldman11, and thank you for the question. I am assuming that you used Turbo Tax Online based upon what you wrote in your question. When I am assisting Turbo Tax Live customers, I have them go into the interview and go first open the Federal Interview; then go to Other Tax Situations; once there then go to Other Tax Forms; and then finally go to Form W-4 and Estimated Taxes. You can then adjust your income and deductions for estimated taxes.
Do start this you can Add a State to your 2022 tax filing in the Tax Returns and Documents area of the home page you are looking at. . You will not actually be adding a state, but just opening the interview.
**Say "Thanks" by clicking the thumbs up icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Hello @fieldman11
Yes, you can adjust the amount of estimated taxes. While in Turbo Tax Software you can prepare estimated taxes. Turbo tax will auto-populate based on your current years income but you can edit.
In the search box type "W4", then click on the blue link shown "jump to W4"; this will lead you to the W4/Estimated taxes section. The first question will ask if you need to prepare a W4. Click NO.
The second question will show you your estimated taxes and allow you to edit. You can answer the questions and make adjustment for expected income.
If you are seeing a refund and are unsure, I suggest double checking your estimated payments to ensure they are showing the correct amount. You can view your form 1040, Schedules 1, 2 and 3. Estimated taxes paid can be found on the 1040 line 26.
Follow instructions in link below to preview your 1040,
You can make adjustments to the estimated tax entries in turbo tax by clicking the "deductions and credits" tab. Then go to estimated taxes. This will show you what is entered.
If you need assistance ensuring your refund/estimated taxes are showing correctly, please do click the "Live Help" link and an Expert will help to ensure your info is correct.
Regards,
Dashonnon