Level 3

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Tax Planning estimates for 2023

10 replies
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I have a client who is going to make 250K in 2023. To compute the 2023 estimated tax, should I deduct the client's drawdowns and independent contractor payments and use the net income as the business income for the estimate computation?

Thanks

ProSeries Basic

This topic has been closed for replies.

Just-Lisa-Now-Answer

Intuit Community Champion

I use Save As and make a What If file and use that to compute 2023 estimates. Then I can delete or add whatever may be different for 2023 without having to worry about screwing up the 2022 file. Then you can use that tax liability as your estimated amount for payment vouchers in the real 2022 file if needed.

Make sure if you do this, to uncheck the EF boxes on the What If file, so you dont get the dreaded Duplicate SSN message in Homebase.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Just-Lisa-Now-

Answer

Intuit Community Champion

I use Save As and make a What If file and use that to compute 2023 estimates. Then I can delete or add whatever may be different for 2023 without having to worry about screwing up the 2022 file. Then you can use that tax liability as your estimated amount for payment vouchers in the real 2022 file if needed.

Make sure if you do this, to uncheck the EF boxes on the What If file, so you dont get the dreaded Duplicate SSN message in Homebase.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

K

KTimberAuthor

Level 3

Can I use the tax planning feature on Pro series to do the same as noted above?

Thanks

qbteachmt

Level 15

What are "client's drawdowns?" Are you describing your taxpayer taking draws from their sole proprietorship (not an expense)? Or, distributions from their S Corp (not an expense)?

And is the business really the only type of taxable income this person will have?

Don't yell at us; we're volunteers

K

KTimberAuthor

Level 3

Yes drawdowns like distributions, he takes a monthly transfer from the business account.

Yes, that's the only taxable income.

Thanks

K

KTimberAuthor

Level 3

It's a sole proprietorship. It's registered as an LlC.

Thanks

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