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Estimated Payments


What is an Estimated Tax Payment?

  • It is the method used to pay tax on income that is not subject to withholding.
  • It includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards.
  • You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.
  • If you do not pay enough through withholding or estimated tax payments, you may be charged a penalty.
  • If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return.
  • Form 1040-ES, Estimated Tax for Individuals, is used to figure your estimated tax.
  • Estimated Tax payments are paid on a quarterly basis, due usually by the 15th of the month following the quarter.

Forms

1040-ES
1040-ES (NR)

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