If you work as an employee, you might not need to make estimated tax payments if you have more tax withheld from your paycheck. But some income is not subject to withholding. This includes some income from self-employment, the interest and dividends, prizes or some rental activities. Be sure to make estimated tax payments on those sources of income throughout the year. You may also make estimated tax payments if the withholding from your salary, pension or other income doesn’t cover your income tax for the year.
You make your estimated payments based on the income you expect to earn and any credits you expect to receive in the year.
Estimated tax payments are due as follows:
January 1 to March 31 – April 15
April 1 to May 31 – June 15
June 1 to August 31 - September 15
September 1 to December 31 – January 15 of the following year
Note: If these due dates fall on a Saturday, Sunday or legal holiday, the payments are due the next business day.
You can use your prior year tax return as a guide and Form 1040-ES, Estimated Tax for Individuals has a worksheet to help you figure your estimated payments.
OR YOU CAN CONTACT US TODAY if you have any questions or would like us to calculate your estimated taxes.
Sincerely,
Maryna Varabyova, CPA
(877) 677-3737
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