1040-es getting started

Forum|Forum|4 years ago
June 12, 2022
2 replies
7 views

I've been using turbo for the past five years. During that time I was W-2. In april I become a self employed contractor. It appears I need to start making quarterly payments. The deadline for this quarter is June 15th. I was hoping to use turbo to do my 1040-es for the current quarter but it's a real mystery how to.

I tried to use the self employed version of turbo but no matter what I do it logs me into the home screen of my 2021 filed return. From the home screen it's a mystery how to move forward for 2022. I want to use turbo to do my 2022 W-2 (everyting prior to April) and moving forward my quarterly payments (1040-es). Is it possible? Do I need two versions. How can I get into the self employed version?

TurboTax Self Employed Online

VolvoGirl

Level 15

You must make quarterly estimated tax payments for the current tax year if both of the following apply:

- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:

90% of the tax to be shown on your current year’s tax return, or 0

100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year you start with your current return, but be careful not to change anything. If you can't get back into your return, Click on Add a State to let you back into your retun.

You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say NO to changing your W-4 and the next screen will start the estimated taxes section.

Or Go to….

Federal Taxes or Personal (Deskop H&B)

Other Tax Situations

Other Tax Forms

Form W-4 and Estimated Taxes - Click the Start or Update button

The 1040ES quarterly estimates are due April 18, June 15, Sept 15 and Jan 17, 2023. 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.....2022 Estimate

Here are the blank Estimates and instructions…..

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

bustAuthor

Level 2

Hi VolvoGirl,

Thanks for quick reply. I was able to get back into my 2021 return following your instructions to add a state. Here is the screen I see after selecting add a state. Next, I clicked on the start button circled in red. A screen came up asking "Did you have any self-employment income or expenses"? Is this the path I should follow? Seems like it's asking about 2021. This is by no means intuitive 🙂 pun intended. Could really use a step-by-step. Got a feeling turbo is not the right package for my situation

VolvoGirl

Level 15

No, You don't need to fill out any business income or expenses in your 2021 return to prepare estimates for 2022. Just go through the Estimated section as I said above.

VolvoGirl

Level 15

Some general info on self employment on Schedule C.......

You will need to keep good records. You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small. You might want to use Quicken or QuickBooks to keep track of your income and expenses.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed return....

http://quickbooks.intuit.com/self-employed

When you are self employed you are in business for yourself and the person or company that pays you is your customer or client.

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.