
You must pay estimated taxes to the Internal Revenue Service every quarter if you receive income not subject to withholding, such as capital gains, dividends, bank interest or self-employment income. You cannot finish your estimated tax filing with Turbo Tax, but you can use the software to generate Form 1040 ES and calculate the amount you owe. You must then mail the form and your payment to the IRS or submit your payment electronically through the Electronic Federal Tax Payment System.
Who Must File
Estimated taxes only are required if you expect to owe more than $1,000 for the year after subtracting your tax withholding. You are exempt from paying estimated taxes in the next quarter if your tax withholdings plus the estimated tax payments already made are expected to cover 90 percent of your tax liability at the end of the year.
Form 1040 ES
To create Form 1040 ES in Turbo Tax, click "Federal Taxes" and select "Other Tax Situations." Scroll down until you see the "Other Tax Forms" option and select "Start" or "Update" when you see "Form W-4 and Estimated Taxes." You will be prompted to enter your expected income for the year, estimated deductions, tax credits and withholdings. Save and print the form so you can send it to the IRS along with your payments.
References
- Intuit.com: Estimated Taxes -- How to Determine What to Pay and When
- Intuit.com: What is IRS Form 1040-ES -- Estimated Tax for Individuals?
- Social Security Administration. "Benefits Planner: Income Taxes And Your Social Security Benefit." Accessed Jan. 17, 2020.
- Internal Revenue Service. "Publication 505 (2019), Tax Withholding and Estimated Tax." Accessed Jan. 14, 2020.
- Internal Revenue Service. "Publication 509 (2020), Tax Calendars." Accessed Jan. 14, 2020.
- Internal Revenue Service. "When to Pay Estimated Tax." Accessed Jan. 14, 2020.
- IRS. "Filing and Payment Deadlines Questions and Answers." Accessed March 26, 2020.
- Internal Revenue Service. "The Basics of Estimated Taxes for Individuals." Accessed Jan. 14, 2020.
- Internal Revenue Service. "The Basics of Estimated Taxes for Individuals." Accessed Jan. 17, 2020.
- Internal Revenue Service. "Topic No. 554 Self-Employment Tax." Accessed Jan. 14, 2020.
- Internal Revenue Service. "Questions and Answers on the Net Investment Income Tax." Accessed Jan. 14, 2020.
- Internal Revenue Service. "Estimated Taxes." Accessed Jan. 14, 2020.
- Internal Revenue Service. "Large Gains, Lump Sum Distributions, etc." Accessed Jan. 14, 2020.
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