I read online that I need to fill in form 1040-ES. I keep reading to type that into search and click the Jump To link. When I search for that form, nothing comes up. I'm using turbotax premier installed on my mac.
I had a liquidation even in Feb where I cashed in some old stock and some options. I need help calculating my 2022 estimated tax based on QSBS treatment of the stock, and based on the strike prices of my options.
I have no idea where to go with turbotax. It won't show me a form 1040-ES. It just keeps saying that turbotax will calculate if I need to submit estimated taxes for me, which is useless because it has no idea what my new incomes will be. Can I even use turbotax premier for this? ...or do I need some different program?
I'd just pay estimated tax equal to 100% of last year's income.
From what I read, if your total income (W2 + Capital Gains) is over $1MM, you have to submit 90% of your 2022 estimated taxes. You do not get the safe harbor option of 110% of your 2021 taxes. So I need the forms to calculate my 2022 taxes with Qualified Small Business Stock treatment and options.
To prepare a W-4 to adjust your withholdings with your employer, and also calculate estimated taxes:
Log into TurboTax and go to
The IRS Publication 505 states
Higher Income Taxpayers
If your AGI for 2021 was more than $150,000 ($75,000 if your filing status for 2022 is married filing a separate return), substitute 110% for 100% in (2b) under General Rule, earlier.
For 2021, AGI is the amount shown on Form 1040 or 1040-SR, line 11.
Thank you, this is helpful. It got me part of the way there. The only gaps are how do I apply the Qualified Small Business Stock treatment to my long term capital gains? ...and there is also a rule that if your AGI is over $1MM, you need to pay 90% of your 2022 taxes, and not 110% of your 2021 taxes. I see an option for 90% of 2022, but my question is, if I received all of the capital gains in Feb of 2022, do I need to pay all of the estimated taxes in April, rather than splitting it into 4 equal payments as turbotax suggests?
Qualified Small Business Stock treatment will certainly be a consideration, but you will have to make the adjustment yourself. See below for a link, and general guidelines.
I did not find any reference to a rule that if your AGI is over $1MM, you need to pay 90% of your 2022 taxes and not 110% of your 2021 taxes. However, you can use the IRS version of a withholding estimator. If that is an issue it should be included.
The IRS says that you should pay as you go, but they don't evaluate that unless you choose to allocate your income quarterly. This would not be to your advantage. So if you make timely quarterly payments you will be fine.
Exclusion of Gain on Qualified Small Business (QSB) Stock 2021 Instructions for Schedule D (2021)
Section 1202 allows you to exclude a portion of the eligible gain on the sale or exchange of QSB stock.
The section 1202 exclusion applies only to QSB stock held for more than 5 years. If you acquired the QSB stock on or before February 17, 2009, you can exclude up to 50% of the qualified gain.
However, you can exclude up to 60% of the qualified gain on certain empowerment zone business stock for gain attributable to periods on or before December 31, 2018. The 60% exclusion doesn’t apply to gain attributable to periods after December 31, 2018. See Empowerment Zone Business Stock, later.
If you acquired the QSB stock after February 17, 2009, and before September 28, 2010, you can exclude up to 75% of the qualified gain.
If you acquired the QSB stock after September 27, 2010, you can exclude up to 100% of the qualified gain.
I sold rental income that affect my 2022 estimated taxes.
@Jaime Cabada1 wrote:
I sold rental income that affect my 2022 estimated taxes.
You can make estimated tax payments for tax year 2022 on the IRS payment website - https://www.irs.gov/payments
If you just want to know how to file your tax return, it's a fairly straightforward process.
Please see the TurboTax Help article How do I e-file my personal (individual) tax return? for guidance.
However, your query is in an estimated tax payments post. If that’s your issue, please see the Help article How do I make estimated tax payments?.
If neither of these are your issue, please provide clarification so that we can assist you.