When you opt not to have taxes withheld from your wages, or if you haven’t paid enough each paycheck, then you may be required to make estimated tax payments. Similarly, those who are self-employed typically pay income tax through estimated payments.
Four Important Facts about Estimated Taxes
- If you think you need to pay estimated taxes, or you are looking for more information about making estimated tax payments, you should refer to the following tips:
- If you expect to owe over $1,000 in federal income tax for 2015, you should be prepared to make estimated tax payments.
- To figure out what the amount you may need to pay is, you should estimate your total annual income, taking into account any deductions or credits that you qualify for. Any changes in your status, such as the birth of a child or marriage, can alter the amount you are responsible to pay.
- Those who rely on estimated tax payments normally pay four times a year, on or around the 15th of April, June, and September, and again on January 15th of the next year. So for your 2015 taxes, you’d pay April, June, and Sept. in 2015, and the last payment would be made in January of 2016.
You can make payments either through the internet or over the phone. If you wish to mail payments to the IRS, you should use the applicable vouchers that are supplied with Form 1040-ES, Estimated Tax for Individuals.