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How do I calculate and pay my New York estimated tax payments?

SOLVEDby TurboTax56Updated 1 month ago

New York State requires taxpayers to make estimated payments if $300 or more in New York State, New York City, and/or Yonkers tax is expected to be owed after deducting credits and the total tax withheld. You can allow TurboTax to calculate what you should pay to avoid an underpayment penalty, or you can pay a fixed amount that you determine will be necessary to avoid a penalty.

What are my options?

New York State gives you five options. Four of these options are based on a percentage of tax from both the prior year and the current year. These options are to pay:

  1. 100% of the tax based on your 2023 income.
  2. 100% of the tax on your 2024 estimated taxable income.
  3. 90% of the tax on your 2024 estimated taxable income.
  4. 66 2/3% of the tax on your 2024 estimated taxable income (applicable to farmers and fishermen only).

Each of the four options above will help you avoid any underpayment penalty. However, if your income changes drastically from one year to the next, you may end up paying more than you need to or not paying enough in estimated taxes.

The fifth option is to pay a fixed amount that you determine on your own. This allows you to pay what you have calculated to be the amount in estimates you should pay based on your current tax situation. The drawback to this is that the amount you pay may not match up with the amount you are liable to pay.

How to enter my estimates

  1. While in the New York return, continue through TurboTax until you see the screen Additional Tax Situations.
  2. Select Start next to Prepare Estimated Tax Vouchers for 2024 (Form IT-2105).
  3. If you have a refund, select Yes or No for Apply Overpayment to New Year? Applying part or all of this year’s refund will lower the amount you need to pay.
  4. For Do you want to set up New York estimated tax payments for 2024?, select Yes.
  5. When you see the screen that says OK, let’s get a few more details. Do you think your income or family size will change in 2024?, choose of the following options:
    • Select No if you want TurboTax to calculate your payments. Then continue to OK, here are your New York tax payments for 2024. Edit each payment to schedule a payment date on or before the due date.
    • Select Yes if you want to make adjustments. If you selected Yes, complete the questions about filing status, dependents, and your 2024 estimated income. Eventually, you’ll come to Estimated Tax Payment Options. Select your method. On the screen that says OK, here are your New York tax payments for 2024, select Edit next to one payment to schedule a date on or before the due date of each payment. (You can file only one quarter with your return at this time. You can make additional estimated payments using the New York Estimated Payments Extra Filing Application.)

How to pay

Payments can be made by scheduling direct debits through TurboTax. You can also print vouchers and mail a check or money order, or pay online at Make a Payment.

For TurboTax Desktop, you can schedule bank withdrawals for your estimated state tax payments when you get to the File section. Or you can opt out and make payments yourself on the New York Department of Taxation and Finance’s website. Alternatively, you can print and mail your quarterly payment vouchers (Form IT-2105) with a check or money order.

TurboTax Online does not have an automatic debit option. You’ll need to either pay online or mail in your vouchers.

If you choose direct debit through TurboTax or the New York State website, you will need to contact the New York Department of Taxation and Finance to change any payment dates or amounts.

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