2006-10-15 10:48:08 · 4 answers · asked by roberta.b@sbcglobal.net 1 in Business & Finance ➔ Taxes ➔ United States
If you estimate that you are going to owe more than $ 1,000.00 when you file your tax return you have to get a form 1040ES and compute what your years tax shortfall will be. Then you split it into four quarters and send a voucher and payment on April 15, June 15, Sept 15 and Jan 15; so that when you file your tax return you owe nothing.
2006-10-17 04:17:37 · answer #1 · answered by acmeraven 7 · 0⤊ 0⤋
Typically, if you work and have the proper amount of deductions reported, you will not need to pay estimated tax. If you have additional income, such as interest, dividends, rent, or other income where you don't have federal tax withheld, you may need to pay the estimated taxes. The idea behind the estimated tax is to make sure you paid the proper amount of tax due each quarter so that at the end of of the year, you have paid the proper amount of income tax. You will be penalized if you do not pay enough tax (I believe within $500) of what is due.
2006-10-15 11:14:07 · answer #2 · answered by jill_e_king 1 · 0⤊ 0⤋
Your question basically stated it: you are supposed to estimate your tax and send a payment based upon reported income.
2006-10-15 10:51:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋
you are required to make estimated payments if your withholdings will not cover your tax bill. Not making these payments will get you a penalty, but that is small unless you owe a lot of money. the irs.gov website is pretty good.
2006-10-15 11:07:31 · answer #4 · answered by marty.krist 1 · 0⤊ 0⤋