Step-by-Step Guide
Step 1: Gather Estimated Tax Payment Information
Collect records of all estimated tax payments made during the current year, including dates and amounts paid.
These payments may include quarterly payments made via Form 1040-ES or payments made directly to the IRS.
Step 2: Enter Estimated Tax Payments in TaxWise
In TaxWise, navigate to the Payments and Credits section.
Find the section for entering Estimated Tax Payments.
Input the total amount of current year ES payments for each quarter (if applicable).
Step 3: Verify Correct Year of Payments
Ensure that the estimated tax payments are attributed to the current year.
If payments were made in the prior year, they should be reported on the prior year’s return.
Step 4: Apply Payments to Tax Liability
TaxWise will automatically apply the entered estimated tax payments to reduce the current year’s tax liability.
Ensure the total payments entered match what is shown on the taxpayer’s IRS records or Form 1040-ES.
Step 5: Review and Submit
Review the estimated tax payments and confirm that the correct amounts have been entered.
Double-check that any overpayments or underpayments have been correctly reflected in the return.
Submit the return to the IRS after confirming the accurate reporting of estimated tax payments.
By properly entering estimated tax payments in TaxWise, you can ensure the taxpayer's payments are accounted for and avoid penalties or underpayment issues. 🚀