Turbotax - can it estimate 2023?

[bltkmt]

I am using Turbotax Deluxe for my 2022 return. I would also like to be able to do some estimates of 2023 taxes (using my assumptions of 2023 taxable income). Can Turbotax do this and if so, where?

[PaunchyPirate]

I believe TurboTax download version has some "what if" features that can be used for this. I don't use that. But I have seen people on here mention it.

What I do with TurboTax download version for the upcoming year estimations, is this... After I'm done with it for 2022, for example, I create a copy of my return that I just filed and name it "2023 Estimations". Then I remove any data from that return if it was a one-time situation (i.e. it won't apply to next year). As the year progresses, I revisit this return and update it as desired to estimate the taxes for the upcoming year. Obviously, it won't reflect any tax law or table changes that happen for the upcoming year, but it's a decent estimation. As good as any, I guess.

[braumeister]

Quote:

Originally Posted by bltkmt I am using Turbotax Deluxe for my 2022 return. I would also like to be able to do some estimates of 2023 taxes (using my assumptions of 2023 taxable income). Can Turbotax do this and if so, where?

In your current return, go Forms in the top of the window. Then click the Open Form button to get a list of forms. Scroll way down in that list to the What-If Worksheet. Open that and you'll be able to try out multiple hypothetical examples.

[audreyh1]

TurboTax 2022 already does the safe harbor type calculations for you for 2023 estimated taxes based on a couple of inputs from you. I use this if I can.

You can also look ahead at possible total year income and taxes using the What-if worksheet and checking the use 2023 rates checkbox.

If you want the annualized income version of estimated taxes during 2023, Tubotax does not handle that for you. The what-if worksheet only does whole year calculations, not the annualized calcs by tax quarter. Maybe you could try applying the multiplication factors* and % to pay yourself. I just use my own spreadsheets if I elect to use that method.

*For example (more or less), first tax quarter due 4/15, multiply YTD AGI by 4 before calculating tax. Pay 22.5% of what’s owed. Second tax quarter, multiply YTD AGI by 2.5 before calculating tax. Pay 45% of what’s owed less first estimated tax payment. It gets complicated really quickly.

[athena53]

Quote:

Originally Posted by PaunchyPirate What I do with TurboTax download version for the upcoming year estimations, is this... After I'm done with it for 2022, for example, I create a copy of my return that I just filed and name it "2023 Estimations". Then I remove any data from that return if it was a one-time situation (i.e. it won't apply to next year). As the year progresses, I revisit this return and update it as desired to estimate the taxes for the upcoming year. Obviously, it won't reflect any tax law or table changes that happen for the upcoming year, but it's a decent estimation. As good as any, I guess.

This is what I do. Another shortcoming is that if you're going to attain an age in the projection year that affects your taxes (e.g. I hit 70.5 this year so can make QCDs), TurboTax still thinks it's 2022 and won't reflect that.

As I get closer to the end of 2023 I'll update capital gains and losses by putting in dummy summary transactions. Same for mutual fund capital gain distributions. This kept me from making an Estimated Payment in December (I already had a refund coming due to lousy investment results) and allowed me to check the impact of various Roth conversion amounts.

[Jerry1]

Quote:

Originally Posted by braumeister In your current return, go Forms in the top of the window. Then click the Open Form button to get a list of forms. Scroll way down in that list to the What-If Worksheet. Open that and you'll be able to try out multiple hypothetical examples.

I have used TT for decades but I just started needing to estimate my taxes and just this year used the What If worksheet. It worked great. It’s pre loaded and it can model the next years tax law (look for the check box). It can also preload and run three additional scenarios.

[Midpack]

Quote:

Originally Posted by braumeister In your current return, go Forms in the top of the window. Then click the Open Form button to get a list of forms. Scroll way down in that list to the What-If Worksheet. Open that and you'll be able to try out multiple hypothetical examples.

That's awesome, thanks!

[donheff]

I'm going to take another look at the what-if worksheet. I had problems being sure what it did in previous years so I just copied my whole return (as mentioned above) to a test file for the next year and tweaked things to match where I expected changes.

[cathy63]

The usefulness of TurboTax's What-If form depends on the complexity of your return. I haven't played with it in a couple of years, but in the past it wouldn't handle things like increasing income changing the amount of your premium tax credit, or passive losses being limited by income. There was just one place to enter the credit and one place to enter the bottom line from Sched E rather than having them calculate on the fly as they do when you create an actual return.

Because of these limitations it wasn't very good at modeling how Roth conversions would affect our overall taxes. I got better info by copying our main file and just subtracting a year from each of our birthdates.

[Jerry1]

Quote:

Originally Posted by cathy63 The usefulness of TurboTax's What-If form depends on the complexity of your return. I haven't played with it in a couple of years, but in the past it wouldn't handle things like increasing income changing the amount of your premium tax credit, or passive losses being limited by income. There was just one place to enter the credit and one place to enter the bottom line from Sched E rather than having them calculate on the fly as they do when you create an actual return. Because of these limitations it wasn't very good at modeling how Roth conversions would affect our overall taxes. I got better info by copying our main file and just subtracting a year from each of our birthdates.

Good point. My modeling was pretty simple. My only change was that me and DW both started taking SS in 2023 and I wanted to model that.

[donheff]

Thanks Cathy63. I just made my copy and adjusted everything. I concluded I need to change my pension withholding by a couple of hundred per month to get close to zero tax next year.

[O2Bfree]

I did as PaunchyPirate did, used the 2022 version to make a second return for 2023. My income is changing this year, so the amount on the estimated tax vouchers included with my 2022 return weren't accurate. I do have a spreadsheet for estimating taxes, but TT probably gets a few corners that I miss.

[Dash man]

I don’t see the What-if worksheet, and I think it comes with a later update. Am I missing it?

[audreyh1]

I usually see it in the list of forms.

[Dash man]

Quote:

Originally Posted by audreyh1 I usually see it in the list of forms.

I know where it is found. I just don’t see it yet in the 2022 version.

[Jerry1]

Quote:

Originally Posted by Dash man I know where it is found. I just don’t see it yet in the 2022 version.

It’s there. I have numbers in mine already. I have the Deluxe version.


ETA - I have the desktop version.

[cathy63]

Quote:

Originally Posted by Dash man I know where it is found. I just don’t see it yet in the 2022 version.

It's in the Windows desktop version. I find it by typing "what" in the search as in the attachment.

[donheff]

Ditto. I see the What if worksheet in Deluxe desktop for Windows.

[Dash man]

Quote:

Originally Posted by audreyh1 I usually see it in the list of forms.

Okay, I found it. I usually find it populated in the Federal Forms listed on the left. When I opened Open Forms and searched I found it. I think old age is catching up with me.
Thanks everyone for your help.