Estmated tax paymnets

Forum|Forum|4 years ago
April 10, 2022
7 replies
56 views

Hi there,

Do i need to setup the Estmated tax payment quarterly as suggested by the turbotax ? Can i Just ignore it like other times?

Thanks

TurboTax Home & Biz Windows

LenaH

Alumni - Expert

It depends. If you receive significant non-wage income, such as from self-employment or investments, you will likely need to pay quarterly estimated taxes or run the risk of underpayment penalties in addition to a large year-end tax bill. If you’re at risk for an underpayment penalty next year, TurboTax will automatically calculate quarterly estimated tax payments and prepare vouchers (Form 1040-ES) for you to print.

If you are self-employed, federal, state, and Social Security taxes aren't taken out of the income you receive. Instead of paying the entire amount you owe in April, setting up estimated tax payments gives you the flexibility to make four smaller payments during the year.

There are other types of income where taxes also aren't withheld. You'll want to consider making estimated tax payments when you receive significant income from the following sources:

Alimony
Dividends
Earnings from a business
Gains from the sale of stock or other assets
Interest income
Rental income

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taxmoney101Author

Level 2

I do have the rental income on top of my W2 income. How can i pay the penalty for 2021 as i didn't pay the estimated payments last year?

PattiF

Level 15

If you owe a penalty to the IRS because of the amount that you owe, this is calculated by TurboTax and added to your return.

If you don't pay estimated payments for the tax year 2022, you may owe a penalty for that year.

TurboTax will automatically calculate your 2022 estimated tax payments and prepare 1040-ES vouchers if we think you may be at risk for an underpayment penalty next year.

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DRF2

Level 2

Question.

I usually pay estimated taxes using TurboTax to generate the forms. I completed all the TurboTax steps to generate these forms which included adding a W4P estimate for new job and the additional income which I will need to pay taxes. I just filed my taxes. I do not see the quarterly 1040ES forms in my list of filed and record document. What happened to them. Do I need to file an amended return to have these documents available for 1040ES1, 1040ES2, 1040ES3, and 1040ES4. I used the forms send to me by IRS and state for estimated taxes. I have not had this problem in previous years. Does the 2021 Turbo tax program have an error?