Why does estimated payment show $0?

3 replies
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I have had to make federal estimated payments the last few years, but TurboTax is showing Payment 4 $0. Nothing will change significantly next year. How do I get an accurate estimate? Thanks!

baldietaxAnswer

Level 12

TT is going to determine the safe harbor amount which is 100% of your 2024 tax (110% if AGI > 150k) or 90% of your estimated 2025 tax, whichever is smaller. By default if you don't provide info on 2025 income, it will use 100/110% of your 2024 tax, and assume your 2025 withholding is the same as 2024, and apply both of these evenly and quarterly, and if the withholding exceeds the safe harbor amount then you will not have any estimated tax. Did you have a high withholding for 2024 and a refund? I'm guessing that's why it thinks you don't need to pay ES for 2025. If it's material you may be able to reduce withholding and earn interest on that money.

To adopt the 2025 method you can go thru the interview under "Other Tax Situations" / "W-4 and Estimated Taxes" and provide information for 2025.

If you are on TT desktop you can go into Forms mode and look at "Est Tax Options" to see the calculation. Not sure equivalent of that for TT online, either way try the interview questions.

JohnB5677

Alumni - Intuit

You will have to post the estimated tax payments for this year

Open TurboTax

Under Federal
Select Deductions and Credits
Scroll down the list to Estimates and Other Taxes Paid
Select Estimated Tax Payments from the drop down
On the new drop down choose Federal estimated taxes for 2024 (Form 1040-ES)
Did you pay federal estimated taxes for 2024? - YES

Where do I enter my estimated tax payments?

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ljh1111Author

Level 2

I'm trying to calculate estimated payments for 2025. I've already made 2024 payments which I've entered.

baldietaxAnswer

Level 12

To adopt the 2025 method you can go thru the interview under "Other Tax Situations" / "W-4 and Estimated Taxes" and provide information for 2025.

If you are on TT desktop you can go into Forms mode and look at "Est Tax Options" to see the calculation. Not sure equivalent of that for TT online, either way try the interview questions.