Estimated tax amount

[MyName]

In 2018, the RMD and SS, etc will generate a large tax amount due.   I really have little or no deductions (new tax reform).

Is it true that estimated taxes for 2018 need only be 100% of what I owe for 2017?  I ask because I had a lot of deductions (stock sale, charity, medical) so I owe very little in 2017.

Pretending I owe $20k in taxes for 2018, but paid $300 taxes in 2017, can 2018 estimated taxes be only $300 and there is no underpayment?

[LauraShine · Accepted solution]

TurboTax will calculate your next years estimated taxes based on your 2017 tax information, we’ll use the lower of the following IRS approved methods to calculate your estimated tax payments.

• 90% of your estimated 2018 taxes
  
• 100% (110%) of your actual 2017 taxes

There are two additional IRS approved methods available:

• 100% of your estimated 2018 taxes
• 66 2/3% of your estimated 2018 taxes (farmers and fishermen only)

If you’d like to use one of the additional methods, answer Yes to the question “Do you want to adjust your income or deduction?” on the Review Your Estimates for 2018 screen. Once you review your income and deductions, you’ll have the option to select from any of the four methods.