SIGforum
Question about 2018 taxes
February 19, 2018, 07:53 AM
tsmccullQuestion about 2018 taxes
Had some changes to income streams in 2017 and underpaid enough to get hit with both federal and state penalties. 2018 income will be different yet again this year, so I was wondering if anyone knows of a program, app or website where you can input your best guesses regarding 2018 income and deductions in order to get a prediction about 2018 tax liability? That would help with deciding on the amounts of quarterly estimated tax payments. If I base it on 2017's actuals, my payments would be higher than they need to be. Thanks.
February 19, 2018, 08:24 AM
Sailor1911The "app" I recommend is called a CPA.
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GeorgeairThis would be incredibly helpful for a lot of folks. I always try to take a forward look about now after just having completed my return an in the past have just used current year Turbotax with adjustments to prior year income/withholding/deduction data to adjust for coming year based on current projections.
With all the changes that is much more difficult. I figure I can use it as an easy way to compute estimate taxable income (TI) by self-limiting things like property/state income taxes to $10K. Getting to the correct TI can then let you easily compute total tax manually or can use one of the many online programs to compute tax on a set 2018 TI. Compare to projected withholding, voilà.
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February 19, 2018, 08:44 AM
JALLENIf you pay estimated tax payments equal to this years taxes, I believe there are no penalties for underpayment. No idea about state, each one may be different.
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Sig209try this:
http://www.dinkytown.net/java/Tax10402018.htmllots of calculators on this site
i use them often
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February 19, 2018, 09:18 AM
tsmccullThanks 209; that looks like it may do the trick!
February 19, 2018, 09:28 AM
Rey HRHquote:
Originally posted by Sig209:
try this:
http://www.dinkytown.net/java/Tax10402018.htmllots of calculators on this site
i use them often
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What Sig209 posted will work or you can set up an Excel or Google sheet to do the same and capture your numbers.
For each quarter and for any tool that you use, you'll need to 1) keep track of how much taxes you've paid already.
2) You'll also need to track how much income you've earned to date minus your deduction.
3) Use the tool to figure out what your taxes are for that income.
4) Subtract the taxes you've previously sent, and the difference is what you'll send for the current quarter's taxes.
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February 19, 2018, 09:39 AM
GeorgeairThanks sig209 - that's perfect! Looks like you can even print from that report, makes it easy to see which items need to be tweaked later in the year.
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February 19, 2018, 09:43 AM
jhe888quote:
Originally posted by Sailor1911:
The "app" I recommend is called a CPA.
If your financial situation is variable, I think this makes a lot of sense.
Plus, a good tax CPA can help you deal with the IRS if you should have a reason to. An app can't do that.
The fish is mute, expressionless. The fish doesn't think because the fish knows everything. February 19, 2018, 07:12 PM
SRquote:
Originally posted by JALLEN:
If you pay estimated tax payments equal to this years taxes, I believe there are no penalties for underpayment. No idea about state, each one may be different.
Depends on how much money you make.... for larger incomes (can't remember cut off) the federal requires 110% of prior year tax. Otherwise really good advice here.
I've used the 'CD version' of TurboTax for my personal return. That program has a rudimentary planning/projection option. I don't know what's in the online version of TTax. (Firm does not allow us to use the supercharged professional tax program we use for client returns due to restrictive language in the license.) A CPA may have better software tools if you really want a good estimate.
Speak softly and carry a big stick loaded Sig February 19, 2018, 09:01 PM
Jamess1The question is how are your taxes prepared?
If you use a CPA that is part of our services. You give us the estimated income and we calculate the amounts. This can be adjusted before each payment.
If you used Turbo Tax there are screens there that you estimated your 2018 income and expenses. It walks you through your options and then calculates the payments. You can also do this each payment.
Again with all of the tax law changes, it may good money spent to sit down and talk with someone.
February 19, 2018, 09:38 PM
GeorgeairGreat. As expected proved out that my 2018 taxes, based on same facts as 2017, went down by 1%. Not 1% of earnings, 1% of total taxes paid in 2017.
Oh well - guess that means I'm lucky enough to be on the cusp of the upside! If only I earned less or took a standard deduction.
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