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Turbo Tax Question
Old 03-25-2011, 07:50 AM   #1
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Turbo Tax Question

I hope I am posting this in the correct forum.
I have been preparing our taxes using TurboTax for the past twenty years.
This year, for the first time, TurboTax included estimated quarterly tax vouchers for 2011 of $723 each.
Our AGI in 2009 was 156K, and increased to 182K in 2010.
We did not owe any taxes for either year.
Neither of us is self-employed.
Is TurboTax making assumptions that our income in 2011 will similarly increase?
Thanks for any and all help.
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Old 03-25-2011, 08:30 AM   #2
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Yes TurboTax makes that assumption. Whether or not you need to make the payments really depends on what your AGI will be in 2011.
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Old 03-25-2011, 08:43 AM   #3
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RockyMtn, thanks for the quick reply.
We are expecting another 18K or so in extra income this year from a 457f deferred comp account that has reached its 5 year maturity, but taxes will be subtracted at the time of the disbursement.
Thanks again for your help.
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Old 03-25-2011, 08:48 AM   #4
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Given your going to be over the $150k threshold again your tax withholding must be at least 110% of your 2010 tax liability. So, if you think that your total withholding for 2011 will exceed last year's withholding by 10% you don't need to make estimated payments. If you don't exceed last year's withholding amount by 10% and don't make the estimated payments throughout the year you could be subject to a penalty on the underpayment.
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Old 03-25-2011, 09:12 AM   #5
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Sounds like I need to look into this before the first quarterly is due.
Though we didn't owe taxes this year, our refund was $158, maybe a little too close for comfort.
Thanks again for the info!
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Old 03-25-2011, 09:34 AM   #6
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try filling out this worksheet and see how it compares to what TTax suggests. Good luck.

http://www.irs.gov/pub/irs-pdf/f1040es.pdf
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Old 03-25-2011, 11:31 AM   #7
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Thanks, RockyMtn, for the link. Just did the calculation.
Looks like I will be setting aside money for quarterly payments.
I wish we weren't forced to take the deferred comp distribution.
Thanks again for your help!
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