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April 1, 2021
Question

How do I update my estimated state taxes since I'm making less money this year?

  • April 1, 2021
  • 1 reply
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I am self-employed and made $32000 in 2020. This year I will only make around $7000.

1 reply

April 1, 2021

TurboTax can assist you in calculating quarterly estimated tax payments and will prepare vouchers (Form 1040-ES) for you to print.   You must make your estimated payments directly to the IRS. You cannot make the payments through TurboTax.  Click this  link for the IRS online payment services. 

To calculate estimated payments, please follow these steps:

1. Click on Federal Taxes > Other Tax Situations
2. Click on the Start/Revisit box next to Form W-4 and Estimated Taxes.
3.Click the No box on the screen Adjust How Much Tax You Pay [This is for withholding from a paycheck.]
4. Click the Prepare Now box on the Estimated Taxes for 2020 screen  
5. Click on the Yes  Review Your Estimates for 2020 screen.

 

TurboTax will display 2020 quarterly estimates based on your 2019 income. If you think your 2020 financial picture will differ, continue through the screens, entering the requested information.  TurboTax will then calculate your quarterly estimated payments for 2020.