Question: How do I know if I have to file quarterly individual estimated tax payments?
Answer:
You must make estimated tax payments 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 year’s tax return, or
- 100% of the tax shown on your prior year’s tax return. Your prior year tax return must cover all 12 months.
There are special rules for:
1. Higher income taxpayers,
2. Farmers and fishermen,
3. Nonresident aliens,
4. Estates and trusts,
Contact us today to learn more if you fall in one of the special rule categories.
When To Pay Estimated Tax
For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date.
If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return.
If a payment is mailed, the date of the U.S. postmark is considered the date of payment. The payment periods and due dates for estimated tax payments are shown next.
For exceptions to the dates listed, see Saturday, Sunday, holiday rule below.
For the period: Due date:
Jan. 11 – March 31 April 15
April 1 – May 31 June 15
June 1 – August 31 September 15
Sept. 1 – Dec. 31 January 15
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Estimate Tax Payments – When and Who – What you need to KNOW
