If you are receiving a fellowship stipend and your university does not allow you to have income tax withheld from it, you may be required to make quarterly estimated tax payments. These estimated tax payments need to be listed on your federal tax return so you receive credit for making them. Luckily, entering estimated tax payments into TurboTax is fairly straightforward. Follow the steps below to account for your estimated tax payments on your federal tax return:
1. Under the ‘Federal Taxes’ and ‘Deductions & Credits’ tabs, click ‘Check for tax breaks’ and ‘Show me the full list.’ Scroll down to ‘Estimates and Other Taxes Paid’ and click ‘Start’ next to ‘Estimates.’
2. Under ‘Estimated taxes’ and ‘Estimated tax payments,’ click ‘Start’ next to ‘Federal estimated taxes for 2016 (Form 1040ES).
3. Affirm that you paid federal estimated tax in 2016 and press ‘Continue.’
4. Enter the amounts of the federal estimated tax payments you made in 2016 and press ‘Done.’
5. Under ‘Estimates and Other Income Taxes Paid’ and ‘Estimated Tax Payments,’ choose ‘Start’ next to ‘State estimated taxes for 2016.’
6. Affirm that you paid state estimated tax in 2016 and press ‘Continue.’
7. Enter the amounts of the state estimated tax payments you made in 2016 and press ‘Done.’
Check: The first page of the 1040A shows the fellowship income in Line 7 and the estimated tax payments in Line 41.
Parent post: Grad Student TurboTax Guide: 2015 Edition
We at Grad Student Finances are not tax professionals, and none of the content in this section should be taken as advice for tax purposes.
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