Why does Turbo tax have me include as income the estimated taxes that I paid? I am retired and the estimated taxes were paid with money that has already been taxed.

[VolvoGirl]

Where are you seeing that?  Estimated are subtracted from your tax due.

[dmertz]

Do you mean tax withholding from retirement distributions, not estimated taxes?  Taxes must be paid with after-tax money, so the amount withheld for taxes from your retirement distribution is part of the taxable distribution.  The amount withheld for taxes is credited on Form 1040 line 16.

[jefferysiegel]

No.  We paid 2018 Federal Estimated Tax using Form 1040-ES Payment Vouchers with out of pocket money.  This money has already been taxed.  It seems that we are going to pay tax on it again if it's listed as income.  We also paid Indiana State Taxes using Form ES-40.

[jefferysiegel]

Go to the Wages & Income tab, takes you to Your Income.  It's listed below Social Security and above Schedule K-1.

[dmertz]

Please add a screenshot of this to your question (with any personal information redacted, of course).

[VolvoGirl]

If you are looking at a summary screen or review screen those show many things and lump a lot of stuff together. You need to check the actual 1040 and make sure it’s right.   

[VolvoGirl]

Can you post a screen shot of it?  I do see estimates listed under Other Business Situations.

[AnthonyC · Accepted solution]

They show in the income section as a reference only - they are not income.  Many people enter/consider them as part of the business income and expenses process.  Since you can enter self-employed income, the program gives you the reference point to adjust any estimated payments you made to offset that income within the income section.  But, they are not actually included in your taxable income.