Do Iowa estimated 2023 tax payments reflect 2023 state tax law changes where pension income is non-taxable? Or where can i see the estimated payment calc details?Thanks

[bkmenzel]

I'm guessing the tax law is not factored in due to the safe harbor methods of calculating estimated tax payments, but wanted to confirm. Thanks!

[DaveF1006 · Accepted solution]

It depends. I assume you trying to determine how the estimated taxes will be applied next year.  Here is how it works.

If your pension income is excluded next year, there will be less taxable income in your return.  As a result, less tax liability will be generated in your 2023 return.  If you report your estimated tax payments correctly in next year's return, this means that more of the estimated taxes you paid will either be refunded to you or your taxes due will not be as much. 

You are correct that the tax law was not factored in determining your estimated tax payments for this year but rest assured, there will be less tax liability to contend with in 2023. so you will enjoy a bigger tax refund or pay less taxes.

Currently, there is not a way to view the exact details on how the state estimated tax payments will be applied as the 2023 tax forms have probably not been released yet in your state.

I hope this helps.

[egaryellis]

According to the Iowa Tax website neither Social Security or IRA distributions are taxable in 2023. I just did my 2022 tax return and TurboTax included the IRA distributions in my estimated taxes for 2023. Do a hand estimate before you pay estimated taxes this year. 

I may not even have to file a 2023 state tax return. 

[Cynthiad66]

Since it is early enough in 2023 to make adjustments to the estimated payments, you should be in good shape.  2023 forms are not ready yet but you can make an estimated computation based on your tax predictions for 2023.  Or you can leave it as it is and expect larger state refunds.

Thank you for using TurboTax.