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partial prepayment of taxes on contract income

Forum|Forum|3 years ago
February 16, 2023
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My husband started a contract job in July. In October, he made a payment to the IRS of expected taxes for that income. This is about half of the taxes we owe. We did not use a form because there was no appropriate form. How can I input this payment into Turbotax?

TurboTax Home & Biz Windows

Best answer by ErnieS0

Here's how to enter your estimated taxes:

Select the Personal tab
Tap Deductions & Credits, then I'll choose what I work on
On "Your 2022 Deductions & Credits," find Estimates and Other Taxes Paid
Start Estimates
On "Estimated Taxes" tap Federal estimated taxes for 2022
On "Did you pay federal estimated taxes for 2022? say YES
Enter the date and amount

Since you only paid half the amount, there will probably be an underpayment penalty added to your return.

You may qualify for first-time penalty abatement.

This is available to taxpayers who receive penalties for failing to file a tax return, pay on time, and/or deposit taxes when due if the following are true:

You didn’t previously have to file a return or you have no penalties for the three tax years prior to the tax year in which you received a penalty.
You filed all currently required returns or filed an extension of time to file.
You have paid, or arranged to pay, any tax due.

Call the toll-free number on your notice either to resolve the issue or to determine if you are eligible for First Time Penalty Abatement or another administrative waiver.

Penalty Relief Due to First Time Penalty Abatement or Other Administrative Waiver

E

ErnieS0Answer