You may be required to make estimated tax payments in certain circumstances, such as not having taxes withheld from your wages or paying too little each paycheck. Self-employed people generally pay taxes through estimated payments at the same time. If you are confused about the process of making estimated tax payments, these four tips can help answer some of your questions.
If you expect to pay more than $1,000 in federal income taxes in 2018, you should be prepared to pay estimated taxes. To determine how much you need to make in estimated payments, you should anticipate your full annual income, including any deductions or credits you may claim at the time of the tax. Some events in life, such as the marriage or birth of a dependent child, may change the amount of taxes you have to pay. If you rely on estimated tax payments, you usually pay four times a year. Payments are usually made on or about 15 April, June and September, and then again on 15 January of the following year. For estimated payments made for 2018, you will pay in April, June and September 2018, and your final payment will be due by 15 January 2019. Payments can be made online or by telephone. Alternatively, you can use Form 1040-ES, Estimated Tax for Individuals, which will provide vouchers for payment, if you decide to mail your payments.