Estimated taxes for 2018

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johnanglemen
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Estimated taxes for 2018

Post by johnanglemen » Wed Apr 04, 2018 12:15 pm

For those of you who prefer to pay estimated taxes based on annualized income (rather than the "safe harbor" of 100%/110% of last year's tax), how are you planning to calculate your estimates this year? I'm guessing there's no tax software out there that is updated for all the 2018 changes yet. Any tips or tricks?

WillRetire
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Re: Estimated taxes for 2018

Post by WillRetire » Wed Apr 04, 2018 12:37 pm

Each year, I use a spreadsheet. I update the tax tables to the current year's values. Same with exemptions (0 starting in 2018). Track all deductible expenses so that I have the choice to itemize or not.

I do the same for STATE income taxes.

This approach comes in handy come tax time because it helps me double-check my tax return calculations. If they don't match, I know I forgot something OR my spreadsheet is wrong.

SRenaeP
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Re: Estimated taxes for 2018

Post by SRenaeP » Wed Apr 04, 2018 12:41 pm

I created an Excel spreadsheet to calculate/track my tax liability. I simply update the formulas each year as the brackets, etc. change.

Sidney
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Re: Estimated taxes for 2018

Post by Sidney » Wed Apr 04, 2018 1:49 pm

johnanglemen wrote:
Wed Apr 04, 2018 12:15 pm
For those of you who prefer to pay estimated taxes based on annualized income (rather than the "safe harbor" of 100%/110% of last year's tax), how are you planning to calculate your estimates this year? I'm guessing there's no tax software out there that is updated for all the 2018 changes yet. Any tips or tricks?
I don't think my income is going to fluctuate that much. I can use current software and tweak the deductions+exemptions to simulate where I think things will end up to get taxable income. Using the 2017 rates I will probably pay the first three quarters at approx the 100% level; by the time it comes to pay for the fourth quarter, the new software will be available and I can adjust accordingly. No chance my tax bill will be less than 75% of last year.
I always wanted to be a procrastinator.

Globalviewer58
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Re: Estimated taxes for 2018

Post by Globalviewer58 » Wed Apr 04, 2018 1:53 pm

Have you tried the free TaxCaster tool available online through TurboTax? They claim the 2018 reforms are in the forecasting tool for 2018.

b4real
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Re: Estimated taxes for 2018

Post by b4real » Wed Apr 04, 2018 2:02 pm


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CAsage
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Re: Estimated taxes for 2018

Post by CAsage » Wed Apr 04, 2018 3:02 pm

There are several. Look for prior threads on this. Here is an excellent one (very complete, same link two names):

www.excel1040.com

https://sites.google.com/site/excel1040/
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.

jebmke
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Re: Estimated taxes for 2018

Post by jebmke » Wed Apr 04, 2018 3:46 pm

CAsage wrote:
Wed Apr 04, 2018 3:02 pm
There are several. Look for prior threads on this. Here is an excellent one (very complete, same link two names):

www.excel1040.com

https://sites.google.com/site/excel1040/
last time I looked at this the break points on qualified dividends/capital gains rates were not quite correct. It was a few weeks ago so maybe he has corrected it. I don't think the error would be huge though.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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CAsage
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Re: Estimated taxes for 2018

Post by CAsage » Wed Apr 04, 2018 4:18 pm

jebmke wrote:
Wed Apr 04, 2018 3:46 pm

last time I looked at this the break points on qualified dividends/capital gains rates were not quite correct. It was a few weeks ago so maybe he has corrected it. I don't think the error would be huge though.
Did you email the guy (author) to let him know? I found him very responsive when I found a (trivial) typo; he really wants to get it right! And for most people... this is a good resource for planning! My taxes got much simpler this year, all of a sudden... :annoyed
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.

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AstroJohn
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Location: Virginia

Re: Estimated taxes for 2018

Post by AstroJohn » Wed Apr 04, 2018 4:36 pm

dinkytown.net has always had very good tax estimators. I've used them for several years. Here is the link to the 2018 software.

http://www.dinkytown.net/java/Tax1040.html

scrabbler1
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Re: Estimated taxes for 2018

Post by scrabbler1 » Wed Apr 04, 2018 4:42 pm

Put me into the "I have a spreadsheet" camp. With the standard deduction now a lot higher, the chance I will itemize (feds) will drop to nearly zero (from about 50%). This greatly helps in determining my 2018 tax liability. The state side has been simple for years because (a) all income is taxed alike, and (b) the chance of itemizing was very low already.

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iceport
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Re: Estimated taxes for 2018

Post by iceport » Wed Apr 04, 2018 5:45 pm

johnanglemen wrote:
Wed Apr 04, 2018 12:15 pm
For those of you who prefer to pay estimated taxes based on annualized income (rather than the "safe harbor" of 100%/110% of last year's tax), how are you planning to calculate your estimates this year? I'm guessing there's no tax software out there that is updated for all the 2018 changes yet. Any tips or tricks?
Is there any reason the new 2018 IRS Withholding Calculator can't be used for estimated taxes? I'm new to estimated taxes, but it seems like the calculator would do a decent enough job of estimating your total tax liability for the year. Do you have a very complex situation, or are you looking to compute estimated tax payments other than just (total 2018 liability)/4?

https://www.irs.gov/individuals/irs-wit ... calculator
"Discipline matters more than allocation.” ─William Bernstein

Kennyt7
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Re: Estimated taxes for 2018

Post by Kennyt7 » Wed Apr 04, 2018 7:44 pm

use the trump tax calculator
pretty simple as most will use the standard deduction

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FiveK
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Re: Estimated taxes for 2018

Post by FiveK » Wed Apr 04, 2018 7:46 pm

johnanglemen wrote:
Wed Apr 04, 2018 12:15 pm
For those of you who prefer to pay estimated taxes based on annualized income (rather than the "safe harbor" of 100%/110% of last year's tax), how are you planning to calculate your estimates this year? I'm guessing there's no tax software out there that is updated for all the 2018 changes yet. Any tips or tricks?
The personal finance toolbox spreadsheet has many 2018 calculations, both for taxes and withholding.

maineminder
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Re: Estimated taxes for 2018

Post by maineminder » Wed Apr 04, 2018 7:48 pm

WillRetire wrote:
Wed Apr 04, 2018 12:37 pm
Each year, I use a spreadsheet. I update the tax tables to the current year's values. Same with exemptions (0 starting in 2018). Track all deductible expenses so that I have the choice to itemize or not.

I do the same for STATE income taxes.

This approach comes in handy come tax time because it helps me double-check my tax return calculations. If they don't match, I know I forgot something OR my spreadsheet is wrong.
+1

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GKSD
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Re: Estimated taxes for 2018

Post by GKSD » Wed Apr 04, 2018 9:19 pm

CAsage wrote:
Wed Apr 04, 2018 3:02 pm
www.excel1040.com
+1

I did my 2018 estimated taxes using Excel 1040. I am finding that about the biggest thing changing for me in 2018 is the elimination of AMT (this year I got hit hard with AMT >$9K).

ucla-engineer
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Re: Estimated taxes for 2018

Post by ucla-engineer » Wed Apr 04, 2018 9:40 pm

johnanglemen wrote:
Wed Apr 04, 2018 12:15 pm
For those of you who prefer to pay estimated taxes based on annualized income (rather than the "safe harbor" of 100%/110% of last year's tax), how are you planning to calculate your estimates this year? I'm guessing there's no tax software out there that is updated for all the 2018 changes yet. Any tips or tricks?
This brings up a good question, what are the "safe harbor" limits if your filing status changes from MFJ to single?

hawkfan55
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Re: Estimated taxes for 2018

Post by hawkfan55 » Wed Apr 04, 2018 9:49 pm

use the trump tax calculator
As he refuses to share his tax returns, coupled with his multiple bankruptcies, I would not recommend using his calculator!
I have used the IRS Calculator for 2018 and found it to be accurate and easy to use. :happy This link may help you get there:
I paid quarterly estimates in the past, however, since I'm in the withdrawal phase, I just have Vanguard withhold taxes during one of my withdrawals later in the tax year.
Forum Library of Investing Advice: https://www.bogleheads.org/wiki/Main_Page

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FiveK
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Re: Estimated taxes for 2018

Post by FiveK » Wed Apr 04, 2018 9:50 pm

ucla-engineer wrote:
Wed Apr 04, 2018 9:40 pm
This brings up a good question, what are the "safe harbor" limits if your filing status changes from MFJ to single?
The "owe less than $1000 or less than 10%" harbors are still safe.

For withheld amounts this year vs. tax due last year, see 2017 joint return and 2018 separate returns under safe harbor rules.

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