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April 6, 2021
Question

Do I need to file form 1040 ES for my estimated quarterly tax payments even though I already know the amount I need to pay based on last year's earnings?

  • April 6, 2021
  • 1 reply
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If so, is there a way to do that through turbo tax or will I have to manually fill out the paper form and mail it in?

1 reply

RayW7
April 6, 2021

If you pay estimated quarterly tax you will need to send form 1040-ES. 

 

When you completed your tax filing with TurboTax they may have offered the option to print 1040-ES Vouchers, but if you did not just follow the link below and you can print them or send the money electronically.  

 

IRS offers an electronic payment option that is right for you. Paying online is convenient and secure and helps make sure we get your payments on time. To pay your taxes online or for more information, go to IRS.gov/ Payments.

 

In most cases, to avoid a penalty, you need to make estimated tax payments if you expect to owe $1,000 or more in taxes for the year—over and above the amount withheld from your wages. In some cases, though, the $1,000 trigger point doesn't matter.

  • If your prior year Adjusted Gross Income was $150,000 or less, then you can avoid a penalty if you pay either 90 percent of this year's income tax liability or 100 percent of your income tax liability from last year (dividing what you paid last year into four quarterly payments). This rule helps if you have a big spike in income one year, say, because you sell an investment for a huge gain or win the lottery. If wage withholding for the year equals the amount of tax you owed in the previous year, then you wouldn't need to pay estimated taxes, no matter how much extra tax you owe on your windfall.
  • If your prior year's Adjusted Gross Income was greater than $150,000, then you must pay either 90 percent of this year's income tax liability or 110 percent of last year's income tax liability

The installment payments are typically due on April 15, June 15, and September 15 of the current year and then January 15 of the following year. You can skip the final payment if you will file your return and pay all the tax due by February 1. If a due date falls on a weekend or legal holiday, the deadline is pushed to the next business day.

 

-follow these links for additional information-

 Form 1040-ES: Estimated Tax for Individuals.

irs.gov.payments.