Estimating Next Years Taxes (2021)

[tax_payer]

ACCIDENTALLY SENT A BLANK QUESTION

What I was going to ask was to do with where to enter the amount of my 2021 RMD in TurboTax (Windows Deluxe ed.) when preparing the 1040-ES estimates for 2021?

[AnnetteB6]

Since there is not a specific place to enter retirement income when working through the estimated payments section of your return, enter the amount of your RMD as W-2 income for calculation purposes.  That way, if you also expect to have Federal taxes withheld from your distribution you can also enter that amount in the W-2 field as well.  

Since this is just a way to calculate your estimated payments, where the data is entered is not critical.  It is more important that the income amount be close to what you expect.

@tax_payer

[tax_payer]

Hi,

That's kind of an intuitive answer but I think it begs the question where would that RMD amount get entered: meaning which data entry field exactly. Could you drill down to the minutia: exact form and specify which line (they inconveniently aren't numbered).

Different question so I hope you don't mind but they deduct a fixed amount from my SS benefits towards payment of my annual income tax - wouldn't that be somehow reducing the amount of projected tax for 2021 that remains to be paid quarterly? If so, how would you adjust for that>

Thanks a lot for this reply. It's a start.

[WendyN2]

There are numerous (and free) programs out there for projecting taxes, which also will include adjustments to calculations based on current expectations. 

Intuit Tax Planner and Analyzer

[tax_payer]

Hello,

While this reply was not an answer to the question I posed, I am grateful to receive it.

My posting was to do with the question of 'where' to enter the RMD for 2021 when projecting the figures TT would need to compute the estimated 2021 tax obligation.

[JohnB5677 · Accepted solution]

This is where you would post your 2021 RMD to calculate your estimated taxes.

1. Start at Other Tax Situations
2. Scroll down and select Other Tax Forms
3. Select Form W-4 and Estimated Taxes
4. Continue through the interview to Enter 2021 Other Income

[tax_payer]

Thanks for this reply. It serves to confirm my hunch wrt where I would add this RMD figure. There was an amount that appeared in the 2020 slot to the left to which I added the 2021 RMD.  The 'retirement income' reference in the available 'explanation' it provided threw me at first as I had inferred it meant income available from some gainful employment during one's retirement. Then after repeated calls to your 'tax experts' who never seemed to quite have the answer, it occurred that it extended to RMDs.

[1941Mike]

 I too would like to estimate next years 2021 taxes, ......but not sure how to get started using this years 2020 software.

2020 returns have already been filed.

How do I re-initiate the 2020 software to enter W2's and 1099's in order simulate an estimated 2021 tax year return, with the understanding that next years tax law changes are likely;  .....just want to get a rough estimate at this time.

Thanks in advance,

Mike1941

[VolvoGirl]

To plan for next year you can go though the Estimate section or in the Desktop program there is also a What-If worksheet. And in Desktop, you can save your return with another name to test in. Go up to FILE – SAVE AS. In the Online version click on Add A State to let you back into your return, Be very careful not to change any of your actual current return.

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 (Home&Business version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

Say No to W4. When you get to the W4 and Estimated Taxes section, say you want to adjust your income to go though all the screens.

[1941Mike]

Thank you for responding, ..........let me try your suggestions

Mike1941

[VolvoGirl]

If you have the Desktop program you can do a What-If worksheet.  

Go to Forms Mode, click Forms in the upper right or on the left for Mac. Then click Open Forms box in the top of the column on the left. Open the US listing of forms and towards the bottom find the What-if worksheet. It's right under Estimated Taxes.  

Or try…Go into Forms View. Once there, at the top of the left column, click on the icon for "Open Form". A popup window will appear. In the text line, type the word "what" without quotes. You should see "what-if worksheet" appear as a selection choice. Double-click it to launch the form.

[Poor Program]

Once again, hoping for a useful response to a question.  Over the past few years I have yet to get a useful response.  However, let's try a new question:

How can I use my 2020 TT program to estimate my tax liability for 2021?

(I am, again, using the "Premier" version of the program.)

[DoninGA]

---

@Poor Program wrote:

Once again, hoping for a useful response to a question.  Over the past few years I have yet to get a useful response.  However, let's try a new question:

How can I use my 2020 TT program to estimate my tax liability for 2021?

(I am, again, using the "Premier" version of the program.)

---

The TurboTax support FAQ gives you directions - https://ttlc.intuit.com/community/tax-payments/help/can-turbotax-calculate-next-year-s-federal-estim...

[DoninGA]

---

@DoninGA wrote:

---

@Poor Program wrote:

Once again, hoping for a useful response to a question.  Over the past few years I have yet to get a useful response.  However, let's try a new question:

How can I use my 2020 TT program to estimate my tax liability for 2021?

(I am, again, using the "Premier" version of the program.)

---

The TurboTax support FAQ gives you directions - https://ttlc.intuit.com/community/tax-payments/help/can-turbotax-calculate-next-year-s-federal-estim...

---

To estimate your individual tax liability the only way to do that is to use the TurboTax desktop software in Forms mode and complete a What-if worksheet.