Below are the steps to calculate estimated taxes for next year.
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the Menu icon then click Federal
- Click 2020 Estimated Tax Payments in the Federal Quick Q&A Topics menu
- Click Yes to review the requirements for making estimated tax payments
- Select either Use worksheet calculation or Pay 110% of 2019 tax liability (100% if your adjusted gross income did not exceed the threshold) then click Continue
- The program will proceed with the interview questions for you to enter the appropriate information. You must enter your estimated earnings in the 2020 year column (using the 2019 column amounts for reference) in order to calculate the estimated tax amount to pay.
Note: The method of paying 110% (or 100%) of the current year's tax liability is only to avoid the interest penalty for underpaying your taxes in the following year. In the TaxAct program, this amount is calculated on Federal Form 2210, Line 4-Current year tax. Use the worksheet method to estimate tax for the following year if you wish to cover all of the estimated tax that will be due on that return.
After you have completed the Estimated Tax Payments section of the Q&A, you have the option to print Form 1040-ES, which includes the quarterly vouchers, and mail the payments or electronically pay the amounts due (both methods are outlined below).
Print vouchers and mail payments:
- From within your TaxAct Online return, click Print Center in the left column.
- Click Custom
- Click the checkbox(es) to the left of what you wish to print (the top section contains individual forms or schedules and the bottom section contains documents or worksheets). You may need to scroll down in the section to locate the item.
- Click Print and then click the PDF link. Click the printer icon or the save icon (available when you hover your mouse over the bottom of the PDF form) to print or save the PDF copy.
Note: If you see a message indicating you have not paid your return fees, click the View/Pay link, which will direct you through the Paper Filing steps. Continue through the screens until you have processed the payment for your product fees and then repeat the steps to print.
- Click Forms
- Expand Federal Forms and Schedules
- Double click Form 1040-ES - 2018 Estimated Tax Worksheet
- Click on the Printer icon above the Form 1040-ES.
In order to pay estimated taxes electronically once you have already filed your tax return, see the IRS web page Payment Options: Pay Online, Installment Plans and More.
Options to electronically pay your estimated taxes are:
- IRS Direct Pay
- Credit or Debit Card Payments
- Electronic Federal Tax Payment System (EFTPS)