Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
Insagn
Level 1

Should I make a fourth estimated tax payment?

Each year I do a Roth Conversion from my traditional IRA and make estimated taxed for the increased income this will add. I have recently added solar electric which will give me a 30% tax credit beginning this year. Will the IRS use my estimated tax payments first or the solar tax credits and refund my estimated payments? The tax credits far exceed my tax liability in 2022 and will take several years to use it all.
1 Best answer

Accepted Solutions
Bsch4477
Level 15

Should I make a fourth estimated tax payment?

The solar credits will be applied toward your tax owed and the rest of your tax liability will be settled by applying your estimated payments. Any amount remaining will be refunded.  

 

View solution in original post

2 Replies
fanfare
Level 15

Should I make a fourth estimated tax payment?

You don't make an extraneous or unneeded Estimated Tax payment unless for some reason you plan to apply it to next year's taxes.

Still you must meet the minimum withholding requirements for your taxable income.

@Insagn 

Bsch4477
Level 15

Should I make a fourth estimated tax payment?

The solar credits will be applied toward your tax owed and the rest of your tax liability will be settled by applying your estimated payments. Any amount remaining will be refunded.  

 

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.6m
Discussions

Manage cookies
v