Under certain circumstances, such as not having taxes withheld from your wages or paying too little each paycheck towards your taxes, you may be required to make estimated tax payments. At the same time, self-employed individuals generally pay taxes through estimated payments.
Four Facts About Paying Estimated Taxes
If you are confused about the process of making estimated tax payments, these four tips may help answer some of your questions.
In 2015 if you anticipate owing more than $1,000 in federal income taxes you should be ready to make estimated tax payments.
To decide how much in estimated payments you will need to make you should anticipate your full annual income, including any deductions or credits you may claim at tax time. Certain life events such as a marriage or birth of a dependent child may alter the amount of taxes you need to pay.
If you are going to rely on making estimated tax payments, generally you pay four times a year. Usually payments are made on or around the 15th of April, June and September and then once more on January 15th of the following year. For estimated payments made for 2015 you would pay April, June and September of 2015 and then your final payment would be due by January 15th of 2016.
Payments can be made either through the internet or phone. Alternatively, if you decide to mail your payments, you can use Form 1040-ES, Estimated Tax for Individuals, which will supply vouchers for payment.
