Estimated Taxes: What Are They & When Are They Necessary?

[beepampered]

Do you pay estimated taxes? What are they and when are they essential? Thanks...

 

[jrstephens]

No. You pay them if you want to offset what you may have to pay at the end of the year. We have never had to pay.

You can go to www.irs.gov and read up on them and decide if you want to do them.

 

[Admin Greg]

Estimated taxes, also known as quarterly taxes, are payments made to the government by individuals and businesses to cover their tax liability for the year. These payments are made in advance, typically four times a year, and are based on the taxpayer's estimated income for the year.They are essential for individuals who have income that is not subject to withholding, such as self-employment income, investment income, or rental income. If you expect to owe $1,000 or more in taxes for the year, you are required to make estimated tax payments.The due dates for estimated tax payments are April 15, June 15, September 15, and January 15 of the following year. If the due date falls on a weekend or holiday, the payment is due on the next business day.Failure to make estimated tax payments can result in penalties and interest being charged on the underpayment of taxes. It is important to accurately estimate your tax liability and make timely payments to avoid these penalties. You can use Form 1040-ES to calculate and make estimated tax payments.