How to enter 2210AI for 2023?

[stevefenwick]

I need to use 2210 for 2023 (not 2022) to estimate 2023 taxes. My income is very variable. How can I do this? I'm using TT Home & Business for 2022.

[ee-ea]

See this info

https://turbotax.intuit.com/tax-tips/small-business-taxes/estimated-taxes-how-to-determine-what-to-p...

[stevefenwick]

Sorry but this doesn't help. I already know my tax situation. I need to be able to enter data into a tax year 2023 2210AI and have it work out the numbers. My income is wildly variable by quarter and none of the standard situations apply well--even at the 90% value I could be massively overpaying this year.

Does TT not offer current TY 2210 entry form, only a last TY form?

[fanfare]

if you pay estimated tax evenly and it comes to 100% (110% for certain high income earners) of your last year's tax i.e. 2022 tax, you won't be penalized, even if your 2023 income is much larger.

April 15th is the first estimated tax payment date for 2023 estimated tax.

by then you will know exactly your prior year's tax, if you are filing on time.

this rule is for the simplified calculation of Form 2210, without resorting to Schedule AI.

the key point is Form 2210 requires even payments.

If you don't like this rule you can fill out Schedule AI next year.

I found it very confusing, so I use the rule.

the other rule is even payments of at least 90% of 2023 tax

If you overpay, you get it back.

if you underpay, you are susceptible to penalties.

again you could use Schedule AI, that is not guaranteed to eliminate the penalty, 

@stevefenwick 

you can use the rule that results in the smaller amount of total estimated tax

[stevefenwick]

This doesn't work for me. My income varies *wildly*; I may have made my entire year's income already in the 1st quarter and have no more income for the rest of the year, or my income in later quarters may be 10x what it was in Q1 (as it was in 2022).

I'm not asking for advice on how to pay estimated taxes. I just want to know if TT has a facility for letting me enter data into a 2210AI for 2023 now, which is what the IRS suggests I do it in my case. "2023 Annualized Estimated Tax Worksheet", page 25 of this year's Pub. 505.

[Critter-3 · Accepted solution]

The program cannot and will not do the estimates using the 2210 AI form. You'll need to use something like an Excel spreadsheet for your unusual situation.

[stevefenwick]

Sadly, this is the conclusion I have also reached. I was hoping someone would say "yes, it's just hidden away somewhere."

A feature request, to any Intuit staff who might read this.

Thanks!

[fanfare]

The only way to do a projection is to enter your 2023 expected amounts into 2022 TurboTax  desktop program as if it were 2022 income.

Type CTL-N to start a new trial tax return, or use "Save As" to start with your current tax return. give it a meaningful name so you don't confuse it with your filed tax return.

@stevefenwick 

[VolvoGirl · Accepted solution]

What I would do is go into 2022 and do the estimate based on the first quarter.  Then before you pay the second quarter June 15, go back in and redo the estimates with the new income and put in what you paid for the first qtr.  Then it will give you new amounts.  Then do the same for the 3rd & 4th.  But first save your return with another name like 2023 Estimates.  That's what I'm going to do too.  I have Home & Business also and I know my income will be different later in the year.  Just keep tweaking it during the year.  

[stevefenwick]

I've done that with other factors in the past (e.g. selling a property). That presumes that factors like tax rates won't change year to year, which can be yet another dangerous assumption. Thanks!

[stevefenwick]

Great minds think alike VolvoGirl!  😄 This is exactly what I was just thinking I might do. Means I'm overpaid if my income declines, but not as massively so as if I did 100% or 90% blindly split over the year.