Landmark Tax Group

6 Tips on Making Estimated Tax Payments

INTERNAL REVENUE SERVICE – Some taxpayers may need to make estimated tax payments during the year. The type of income you receive determines whether you must pay estimated taxes. Here are six tips from the IRS about making estimated tax payments.

1. If you do not have taxes withheld from your income, you may need to make estimated tax payments. This may apply if you have income such as self-employment, interest, dividends or capital gains. It could also apply if you do not have enough taxes withheld from your wages. If you are required to pay estimated taxes during the year, you should make these payments to avoid a penalty.

2. Generally, you may need to pay estimated taxes this year if you expect to owe $1,000 or more in taxes when you file your federal tax return. Other rules apply, so check with a qualified tax professional, and bear in mind special rules apply to farmers and fishermen.

3. When figuring the amount of your estimated taxes, you should estimate the amount of income you expect to receive for the year. You should also include any tax deductions and credits that you will be eligible to claim. Be aware that life changes, such as a change in marital status or a child born during the year can affect your taxes. Try to make your estimates as accurate as possible.

4. You normally make estimated tax payments four times a year. The dates that apply to most taxpayers are:
– April 15th
– June 15th
– September 15th
– and January 15th of the following year.

5. You should use Form 1040-ES Estimated Tax for Individuals to figure your estimated tax.

6. You may pay online or by phone. You may also pay by check or money order, or by credit or debit card. To see all of your payment options, click here. If you mail your payments to the IRS, you should use the payment vouchers that come with Form 1040-ES. See Publication 505, Tax Withholding and Estimated Tax for detailed information on Estimated Taxes or contact Landmark Tax Group now for immediate assistance.

See: 6 Tax Tips for the Self-Employed

See: Deductible vs. Non-Deductible – A Simple Guide 

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