I am a self employed contractor for a smal tutoring service. As I filled out this year's tax forms, I noticed that last year, the filer recommended that I pay quarterly, which I obviously did not. on this year form, I had to pay for not filing this. How can I prevent this? How do figure out how much and to whom to pay?
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When you are finished with your return in TurboTax, you may have estimated payment vouchers printed automatically with your return if it appears that this is something that would benefit you. The information on those vouchers will be based on the information that was entered into your return.
Or, you can go through the estimated payments section in TurboTax and adjust your projected income for the coming year in order to calculate the payment amounts yourself.
Either way, this information about estimated payments that you plan to make is not filed with your tax return. The IRS will not know whether or not you plan to make quarterly payments, so the responsibility to make those in a timely manner will rest with you.
If you file state taxes, you can create estimated payment vouchers for the state as well. Look for the question about estimated payments toward the end of finishing your state return.
The following TurboTax help article will explain more about estimated payments and how to go through the section in your return to enter your projected income to calculate the estimated payment amounts:
How do I make estimated tax payments?
Be sure to keep records of the payments that were made and the dates they were made. This information will be entered into your tax return for next year.
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