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Level 3
posted Feb 27, 2022 1:26:17 PM

How to Avoid Double Counting Estimated Income Tax?

When a user pays quarterly state and federal estimated income tax for the prior calendar year (current tax year), do they also include that income in the TurboTax section "Your income" > "Self-employment income and expenses" in addition to the "1040-es" form under section "Federal" > "Deductions & Credits" > "Estimates and Other Taxes Paid" > "Estimated Tax Payments"?

 

The concern is that the income will be double-counted if added in both sections described above.

0 3 1196
3 Best answers
Level 15
Feb 27, 2022 1:28:56 PM

The estimated tax payments are only entered in the Estimates section of the program.

 

To enter, edit or delete estimated taxes paid (Federal, State, Local) -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Estimates and Other Taxes Paid
  • On Estimates, click on the start or update button

Or enter estimates paid in the Search box located in the upper right of the online program screen. Click on Jump to estimates paid

 

Or click on Tax Tools on the left side of the online program screen.
Click on Tools
Click on Topic Search
Type in estimated tax payments, click on GO

 

Federal estimated taxes paid are entered on Form 1040 Line 26

Level 3
Feb 27, 2022 3:57:36 PM

The TurboTax support team member I spoke with shared the same information.

 

Much appreciated!

Level 3
Apr 3, 2023 1:11:39 PM

All income should be included in the TurboTax section "Your income" > "Self-employment income and expenses".

  • This includes earned income that has been accounted for when paying the estimated income taxes in the prior calendar year.
  • When working on the current tax year TurboTax will ask what has already been paid in estimated tax payments in the prior calendar year.

3 Replies
Level 15
Feb 27, 2022 1:28:56 PM

The estimated tax payments are only entered in the Estimates section of the program.

 

To enter, edit or delete estimated taxes paid (Federal, State, Local) -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Estimates and Other Taxes Paid
  • On Estimates, click on the start or update button

Or enter estimates paid in the Search box located in the upper right of the online program screen. Click on Jump to estimates paid

 

Or click on Tax Tools on the left side of the online program screen.
Click on Tools
Click on Topic Search
Type in estimated tax payments, click on GO

 

Federal estimated taxes paid are entered on Form 1040 Line 26

Level 3
Feb 27, 2022 3:57:36 PM

The TurboTax support team member I spoke with shared the same information.

 

Much appreciated!

Level 3
Apr 3, 2023 1:11:39 PM

All income should be included in the TurboTax section "Your income" > "Self-employment income and expenses".

  • This includes earned income that has been accounted for when paying the estimated income taxes in the prior calendar year.
  • When working on the current tax year TurboTax will ask what has already been paid in estimated tax payments in the prior calendar year.