Hi, I filed my 2021 taxes back in February like I do every year with no issues. I have never needed estimated taxes before.
Back at the end of April I was laid off from my job and given a 7-month severance payment. So, for the first 5 months and my 7-month severance I had taxes taken out on W2s.
I took a 1099 contract job for July and August. September, I started a new regular W2 job. My wife and I file jointly, and she works most of the year on a W2.
Do I need to file estimated taxes for my untaxed wages for July and August? Also, how the heck do you do it if I already filed my 2021 taxes with Turbotax? I can't quite figure it all out. Help. Thank you.
You'll need to sign in or create an account to connect with an expert.
You will not be penalized for underpayment of estimated tax if:
1) your timely estimated tax payments equal or exceed 90% of your 2022 tax or
2) your timely estimated tax payments equal or exceed 100% of your 2021 tax (110% if your 2021 adjusted gross income was more than $150K) or
3) your balance due after subtracting taxes withheld from 90% of your 2022 tax is less than $1,000 or
4) your total taxes are less than $1,000.
If you need to make estimated payments, you can do at the IRS web site at the link below.
If you used a desktop version of TurboTax to file your 2021 tax return, you can use the "What If" feature.
See https://ttlc.intuit.com/community/taxes/discussion/how-do-i-get-the-what-if-worksheet/00/163592
You will not be penalized for underpayment of estimated tax if:
1) your timely estimated tax payments equal or exceed 90% of your 2022 tax or
2) your timely estimated tax payments equal or exceed 100% of your 2021 tax (110% if your 2021 adjusted gross income was more than $150K) or
3) your balance due after subtracting taxes withheld from 90% of your 2022 tax is less than $1,000 or
4) your total taxes are less than $1,000.
If you need to make estimated payments, you can do at the IRS web site at the link below.
If you used a desktop version of TurboTax to file your 2021 tax return, you can use the "What If" feature.
See https://ttlc.intuit.com/community/taxes/discussion/how-do-i-get-the-what-if-worksheet/00/163592
Besides income tax, you also will pay an SE tax of 15% on the contract job,
If you want to pay those taxes now, make an Estimated Tax payment.
Thanks for the info tagteam.
So, I found the What-If worksheet in Turbotax. I'm guessing I just fill this out with my current info from this year and it will tell me if I owe and how much? Is that the idea?
Correct... it will estimate how much to pay in estimates.
Thanks everyone, really great information.
Edit - I ended up using that What-If worksheet. I had to make a few projections of course, but it was pretty easy since it already had everything from 2021 in there. I just made a manual adjustment to correct for the 2022 updated withholding info. Thanks.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Jam89
New Member
tyerac31
New Member
user99e7f063
New Member
termite201
New Member
mictg890
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.