How to recalculate estimated tax payments for next year

[marcyblake]

My turbotax calcuklation is $3234 quarterly. This is almost twice as much as I paid last year. This seems excessive as I plan to retire in June and my income will drop significantly.

[MargaretL]

You can make adjustments when going through the TurboTax estimated payments calculations. The program calculates the payments based on your 2016 income, you are correct. Since it will significantly drop, be sure to adjust it when going through the interview questions. 

1. Federal Taxes Tab 
2. Other Tax Situations tab
3. Other Tax Forms, select Form W-4 and Estimated Taxes

At this point, Turbo Tax will ask a series of questions. The first question is in regards to form W4 withholdings. If form W-4 is not applicable, select ‘No’ and continue.

Turbo Tax originally calculates estimated taxes based on your 2016 information.  Since your 2017 information may be different, please make sure that you make adjustments to your income and deductions so that Turbo Tax can recalculate your estimated payments for 2017.  Otherwise, the estimates will not be accurate and you will under or overpay. To do so, please answer “Yes” to “Do you want to adjust your income and deductions?” and continue through the questions. Once you are done, you will be able to print the estimated vouchers.

[kerkar]

I have a 2019 Home & Business desktop version. I e-filed in Apr'20.  It calculated my estimated taxes for 2020. I want to update the 2020 data and recalculate. How do I do that?