Category: Finding Deductions
Who must pay estimated taxes?
If you had a tax liability for the previous tax year, you may have to pay estimated tax for the current tax year.
You must pay estimated tax for the current tax year if both of the following apply.
* You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and credits.
* You expect your withholding and credits to be less than the smaller of;
* 90% of the tax to be shown on your current tax return, or
* 100% of the tax shown on your prior year tax return. Your prior year tax return must cover all 12 months.
Estimated payments are due on April 15, June 16, September 15 and then January 15, of the next calendar year. To calculate the amount you should send in for your estimated payment use 100% of last year's tax liability divided by 4 payments (if you are making four payments for the year). If you missed a payment and are only making 3 payments for the year then divide by three.
You can print out the payment voucher within our program by logging in > Federal Section > Payments and Estimates > Vouchers for Next Year's Estimated Payments. Enter your payment amounts and select Continue. Then go to Summary and create a PDF. The payment vouchers will be included in the PDF of your return.
For more information, please review this link: Estimated Taxes.