Estimated quarterly taxes from last year's return

[actax1]

How do I use last year's Tax Return to figure out my estimated quarterly taxes? I have W2 and 1099 income. Am I correct in thinking that I could take last year's tax from my 1099 income and pay 110% of that (split into quarters) to avoid penalties this year? If so, how do I find the tax liability that came only from the 1099 component?

[Michele_H]

Hi @actax1 There are several tools available to help you determine how much you should pay quarterly.

General rule is you pay 15.3% Self employment tax plus Federal and State taxes (these figures are based on your tax bracket) on your business profit if you are a Sole proprietor, Single member LLC or a partnership.  

Here is a helpful tool to determine what you could possibly owe at the end of the year.

https://turbotax.intuit.com/tax-tools/

[actax1]

Thank you! Do you know how I can follow these instructions for last year's tax return? I'm currently not able to search for "1040-ES" to jump to the document.

When you prepare your 2020 return, we'll automatically calculate your 2021 estimated tax payments and prepare 1040-ES vouchers if we think you may be at risk for an underpayment penalty next year.

You can also calculate your 2021 estimated taxes and generate the payment vouchers by doing this:

1. With your tax return open, search for 1040-es (be sure to include the dash) and select the Jump to link.
2. Answer No to the question Do you want to change your W-4 withholdings for 2021?
3. Answer the questions about things like your 2021 filing status, income, and deductions.
4. Eventually, you'll come to the Print Vouchers? screen. Answer Yes and we'll include your 2021 1040-ES payment vouchers when you print a copy of your return later.

[DoninGA]

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@actax1 wrote:

Thank you! Do you know how I can follow these instructions for last year's tax return? I'm currently not able to search for "1040-ES" to jump to the document.

When you prepare your 2020 return, we'll automatically calculate your 2021 estimated tax payments and prepare 1040-ES vouchers if we think you may be at risk for an underpayment penalty next year.

You can also calculate your 2021 estimated taxes and generate the payment vouchers by doing this:

1. With your tax return open, search for 1040-es (be sure to include the dash) and select the Jump to link.
2. Answer No to the question Do you want to change your W-4 withholdings for 2021?
3. Answer the questions about things like your 2021 filing status, income, and deductions.
4. Eventually, you'll come to the Print Vouchers? screen. Answer Yes and we'll include your 2021 1040-ES payment vouchers when you print a copy of your return later.

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Using the TurboTax desktop editions -

Click on Federal Taxes (Personal using the Home & Business edition)

Click on Other Tax Situations

Scroll down to Other Tax Forms

On Form W-4 and estimated taxes, click on the start or update button

1. Answer No to the question Do you want to change your W-4 withholdings for 2021?
2. Answer the questions about things like your 2021 filing status, income, and deductions.
3. Eventually, you'll come to the Print Vouchers? screen. Answer Yes and we'll include your 2021 1040-ES payment vouchers when you print a copy of your return later.