Estimated Taxes

[loubar21]

If I get an Extension how do I find out what my Estimated taxes are for April, June, and September?

[JohnB5677]

Estimated taxes are exactly that, your best guess.  You can calculate your anticipated 2022 taxes in TurboTax even without having the 2021 tax return done.

If you're in the Online version of TurboTax

1. On the menu bar on the left that shows.

   1. My Info

   2. Federal

   3. State

   4. Review

   5. File

2. Select Tax Tools

3. On the drop-down select

4. There will be 4 green boxes

5. Select Tax Topics

6. Type Estimated Taxes

7. This will start you with the interview.

[Nan2C]

COPIED FROM IRS WEBSITE  irs.gov  form 1040ES  

General Rule

In most cases, you must pay estimated tax for 2022 if both of the following apply.

1. You expect to owe at least $1,000 in tax for 2022, after subtracting your withholding and refundable credits.

2. You expect your withholding and refundable credits to be less than the smaller of:

or a. 90% of the tax to be shown on your 2022 tax return,

b. 100% of the tax shown on your 2021 tax return. Your 2021 tax return must cover all 12 months.

If you have a general figure of what you need to pay for 2021 you are all set!

[ErnieS0]

There are two parts of estimated taxes — the tax and the penalty.

You can avoid the underpayment tax penalty if you pay:

1. 90% of your 2021 tax, or
2. 100% of your 2020 tax. Your 2020 tax return must cover a 12-month period.

The tax payments must also match your income stream, so you could still be penalized if you paid a lump sum with your extension.

For 2022, you can estimate your income as you go along and pay the difference in January 2023. You can also file you tax return sooner than October. If you do that, then you will know what 100% of your 2021 is.