Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Estimated taxes are payments made to the government by individuals or businesses to cover their expected tax liability for the current year. These payments are made in advance, as opposed to regular income tax payments which are made after the year has ended.
Anyone who receives income that is not subject to withholding, such as self-employment income, interest, dividends, or rental income, may need to pay estimated taxes. This includes individuals, sole proprietors, partners in a partnership, and shareholders of S corporations.
Estimated taxes are necessary if your tax liability for the current year is expected to be more than $1,000 after subtracting any withholding and credits, or if your withholding and credits are expected to be less than 90% of your current year's tax liability, or 100% of your previous year's tax liability (110% if your adjusted gross income for the previous year was more than $150,000 for married couples filing jointly or $75,000 for single filers).
For most taxpayers, estimated taxes are paid in four equal installments throughout the year. These payments are usually due on April 15, June 15, September 15, and January 15 of the following year. However, if you receive income unevenly throughout the year, you may be able to make unequal payments.
You can pay estimated taxes either online, by phone, or by mail using Form 1040-ES. If you are a sole proprietor, you can also pay estimated taxes through your regular income tax return using Form 1040. It's important to make sure that your payments are accurately calculated and submitted on time to avoid penalties and interest.