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teamely5
New Member

Why did TurboTax 2024 fail to apply estimated tax payments from 2023 return?

As a result I massively overpaid taxes which P.O.d my partner.
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2 Replies

Why did TurboTax 2024 fail to apply estimated tax payments from 2023 return?

Did you enter them?  

 

 Did you enter the payments you made into your tax return? 

 

Go to Federal>Deductions and Credits>Estimates and Other Taxes Paid>Other Income Taxes 

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Why did TurboTax 2024 fail to apply estimated tax payments from 2023 return?

Last year did Turbo Tax print out 4 estimated payment slips?  Those were optional to pay.  They were just a suggestion.  The IRS wasn't expecting them.  Turbo Tax will never know if or when you paid them.  So you need to manually enter the payments into your return.

 

To enter Federal or State Estimated Taxes Paid, including a state estimated payment made in January for the prior year, go to

Federal on left or at top (Personal for Home & Business)

Deductions and Credits

Then scroll way down to Estimates and Other Taxes Paid

Estimates - click the Start or Update button

 

You enter state estimated payments under the federal side (because they can be a federal itemized Deduction). THEN after you finish filling out the estimates under Federal you need to click on the State Tab at the top and start the state return over for it to update.

 

Some info.........

The 1040ES quarterly estimated tax payments DO NOT get sent to the IRS or state with your return. So they won't be expecting them. If you are receiving a refund or low tax due and Turbo Tax prepared the vouchers then your tax liability was probably reduced by credits. Turbo Tax is very conservative and doesn't want you to owe too much the next year. They might have printed out if you got a one time large income this year. Like if you took a IRA or 401K distribution or had a large capital gain. They are just a suggestion. You can ignore them.

 

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