Easier Way to Do Estimated Taxes

[dubious1]

I use TT and have not had to pay estimated taxes.  Single, fixed income, 15% bracket.  I now have a windfall taxable interest income added in '24 of up to $5k quarterly, no withholding.  May I just pay 15% x $5k quarterly to the IRS without having to insert all the estimates and info into the TT estimated taxes routine?  Or can I safely wait until I do my TT23 return, which will be Apr24 after the first quarter?  Thank you. 

[JohnB5677]

Possibly, but I do have some questions.

• What has your previous tax history looked like?
• Did you owe taxes are have you been getting refunds?
• Do you have any other changes to your income?
• How do you have taxes taken out of your other accounts?
• You said a $5,000 windfall.  Do you expect this to be for only one year?
• Indecently, there isn't a 15% tax bracket.  There are 10% 12% then 22%.
• However, if your Social Security is taxable it may come close to 15% in the 10% bracket.

If you currently have enough taxes withheld to get a refund, you should be fine doing the (15%) X $5,000 for a quarterly tax payment.

The first estimated payment is due NO LATER THAN April 15th, 2024

Please see: When are quarterly estimated tax payments due?

[dubious1]

Well none of that sounds easier.  OK, 22%.  I guess TT will cover this when I finish TY23 taxes.

[MonikaK1]

There are several tools you can use to calculate your estimated taxes for 2024.

When you prepare your 2023 return, TurboTax will automatically calculate your 2024 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 2024 estimated taxes and generate the payment vouchers by following the steps below. You will need to wait until your filed return is processed (payment acknowledged / refund received) before reentering your return. See here for the process to open/amend a return that has been filed.

To calculate estimated taxes and prepare Forms 1040-ES:

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 2023?
3. Answer the questions about things like your 2023 filing status, income, and deductions
4. 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

In addition, TurboTax's TaxCaster is available without opening your return and will estimate your total taxes for 2024.

You can also use the IRS Withholding Estimator to calculate amounts to be withheld from wages.

Have this ready:

• Paystubs for all jobs (spouse too)
• Other income info (side jobs, self-employment, investments, etc.)
• Most recent tax return