Estimated Taxes

[MSchaf72]

I sold a house in 2020 and had to pay Capital Gains tax.  This was quite and increase in income over 2019 and resulted in a large tax payment for 2020.  So Turbo Tax created an estimate for taxes in 2021 based on my income including the house sale (which is a one off) 2020 tax liability.  However my income for 2021 will be less than it was in 2019.  Since this was a one time boost in income based on a sale of property and will not occur in 2021 I shouldn't have to pay tax based on an income I won't receive.  What do I do to fix my 2020 return so that it does not include estimated taxes?

[BillM223 · Accepted solution]

Even if TurboTax prints four 1040-ES forms, you don't actually have to use them.

They are simply created as a convenience for you if your 2021 income is about the same as your 2020 income (which you say it won't be).

If in 2021 you believe that your withholding (or whatever you do) on your W-2(s) will more than cover your tax, then you don't have to make any estimated tax payments at all.

[easeybob]

Turbo tax did not bring up questions for me on estimated  federal taxes for 2021.  I already filed for 2020. How do I now handle preparingES 2021

[MaryM428]

Go back into your return.  After you file, you need to click the Add a State button to get back into your return.

Follow these steps:

Sign into your TurboTax account using a browser
 

• Federal
• Other Tax Situations
• Other tax Forms
• Form W-4 and Estimated Taxes
• Skip the W-4 question
• On the next screen Estimated Taxes for 2021 select Prepare Now
• Make your adjustments and click to Print Vouchers with Your Return
• Go to Tax Tools
• Print Center
• Print your 2021 vouchers

Here is a TurboTax Article on Estimated Taxes

 @easeybob