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does turbo tax have an estimated tax calculator

Forum|Forum|1 year ago
March 23, 2025
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I need an estimated tax calculator that adjusts for varying income in each quarter. This year my first quarter income will be larger than the other quarters because of a Roth conversion and according to IRS 1040-ES, I would need to adjust my quarterly payments accordingly. Does Intuit have an estimated tax calculator that adjusts estimated quarterly payments?

TurboTax Deluxe Online

Best answer by DaveF1006

in searching through the internet, I can't locate a calculator that calculates estimated tax payments that uses the Annualized method. The next best thing is to use Worksheet 2-7. 2025 Annualized Estimated Tax Worksheet that appears in Publication 505.

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MindyB

Yes. Here is how to update in TurboTax Online:

Navigate to Federal Taxes > Other Tax Situations
Go to Other Tax Forms
Start or Revisit Form W-4 and Estimated Taxes
Continue past the W-4 section to get the estimated tax section, Estimated Taxes for 2025
You will be asked if you want to adjust your income or deductions, answer yes, and manipulate the answers to increase your tax (in other words, estimate up income and/or down expenses)

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poets-impost3pAuthor

Thanks but I only see that it calculates the estimated payments as if the income is earned equally over the year and makes the payments equal. In my situation my income is high in the first quarter and lower the remaining three quarters. The 1040-ES form says to adjust payments if income varies through the year but I don’t see a way of doing that the form refers me to Pub 505 if that helps.

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poets-impost3pAuthor

Hi,

Are you paying estimated taxes based on 110% of last year's taxes? If so, you should be fine just doing equal quarterly installments, you don't need to pay more in the first quarter, as long as those four equal installments add up to the total of last year's taxes.

The annualized income installment method is designed to help people who might make more LATER in the year (for instance, someone who makes a large percentage of sales after Thanksgiving). That way they don't have a big estimated tax bill at a time when they haven't made enough to cover it, and they don't end up with penalties for underpayment.

Agreed the annualized method is a hassle, and there is no good reason to use it if you make extra income in the first quarter. Better to put the extra 1Q money in an interest-bearing account and then pay the other equal quarterly installments when they are due.

All the normal caveats, this is not tax advice, consult a professional, etc.

Cheers, jamie

Yes, I ended up doing the 110% equal payments based on last year’s income. Varying it over the quarter was a bit too confusing.