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New Member

Hello. This is my first time paying self employment taxes. I'd like to make my first estimated tax payment, I'm just not sure what to consider my income. For example, for January-March if I made $2000

And used 50% of my home for work would I deduct 50% of each month's rent from that $2000?
4 Replies
Employee Tax Expert

Hello. This is my first time paying self employment taxes. I'd like to make my first estimated tax payment, I'm just not sure what to consider my income. For example, for January-March if I made $2000

You should take into account all of your deductions when preparing your 2020 estimated tax payments.  You can use the instructions below to determine the estimated tax payment you should make in 2020.  For the home office deduction, please see the article Claiming the Home Office Deduction for more information as the amount you can deduct may be limited.  Here are some highlights:

 

You may be able to claim the home office deduction if your office is:

Your home office business deductions are based on the percentage of your home used for the business or a simplified square footage calculation.  With either method, the qualification for the home office deduction is determined each year. So you might qualify one year and not the next, or vice versa.  

  • If you include home depreciation as part of the home office deduction and eventually sell your home at a profit, you will have to pay a capital gains tax on the total amount of depreciation deductions you took while you were living there, assuming you sold the home for a profit.
  • Limit on write-offs - the law puts a cap on how much you can deduct for the business use of the home. Basically, your home office deductions can’t exceed your home-based business income. In other words, home office expenses can’t create a tax loss to shelter other income.

 

 

You can calculate your 2020 estimated taxes and generate the payment vouchers by doing this:

  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 2020?
  3. Answer the questions about things like your 2020 filing status, income, and deductions.
  4. Eventually, you'll come to the Print Vouchers? screen. Answer Yes and we'll include your 2020 1040-ES payment vouchers when you print a copy of your return later.

TurboTax uses the most recent info when calculating your 2020 estimated taxes.

 

Related Information:

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Returning Member

Hello. This is my first time paying self employment taxes. I'd like to make my first estimated tax payment, I'm just not sure what to consider my income. For example, for January-March if I made $2000

Why isn't it possible when I login to TurboTax to pay my quarterly estimated 2020 taxes?? Extremely frustrating. I've looked everywhere and there literally isn't any option!

Level 15

Hello. This is my first time paying self employment taxes. I'd like to make my first estimated tax payment, I'm just not sure what to consider my income. For example, for January-March if I made $2000

You can't use Turbo Tax to pay the estimated payments.  You can use your 2019 tax return to help calculate the payment amounts.

 

Turbo Tax will calculate the 1040ES estimated payments

https://ttlc.intuit.com/community/tax-payments/help/can-turbotax-calculate-next-year-s-federal-estim...

 

Or Here are the blank Estimates and instructions…..

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

 

The 1040ES quarterly estimates are due April 15, 2020, June 15, Sept 15 and Jan 15, 2021.   The first 2 quarters are not due until July 15 this year.  Your state will also have their own estimate forms.

 

Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2020 Estimate

 

Level 15

Hello. This is my first time paying self employment taxes. I'd like to make my first estimated tax payment, I'm just not sure what to consider my income. For example, for January-March if I made $2000

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