Estimated Tax Calculation

Forum|Forum|2 years ago
April 12, 2024
1 reply
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Does the TurboTax 2024 Estimated Tax calculation include Social Security Tax or do I have to add 15.3%? As a self employed consultant I receive income on a 1099 with no taxes withheld.

PaulaM

Employee

Yes, you can have TurboTax calculate the estimated taxes including the self employment income taxes. Follow the directions in this FAQ.

It is a comprehensive section so take your time working through the section to estimate accurately your 2024 taxes.

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DougB5Author

I will thank the people who responded with very helpful tips for using the TurboTax calculations. However, it may be due to user error or that my tax situation changed from 2023 to 2024 that the calculation only covered the 110% of 2023 tax to avoid penalties. I was an employee with W-2 withholding in 2023. In 2024 I am self employed with 1099 income with no withholdings. I downloaded the 1040ES form and manually calculated my estimated taxes for 2024 and came up with a substantially higher number due to the self employment tax. I did not see an option in TurboTax to print the vouchers at the full estimated tax vs just the 100% or 110% of the previous year's tax. I would prefer to make the larger quarterly payments while earning the income than get the large tax bill due in April.

PaulaM

Employee

Be certain that you pay enough for each quarter because that is when the IRS looks for whether it is enough-by each quarter.

It is possible to have enough withheld/paid in for your total tax liability but miss one quarter and still have a penalty. Aside from quarterly, you make payments directly at anytime.

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