 Paying taxes is a crucial responsibility that every citizen must fulfill. However, failing to pay the required tax amount can result in penalties. If your withholding and estimated tax payments are not sufficient, you may face a penalty. Additionally, even if you are due a refund, you may still be charged a penalty if you make late estimated tax payments. IMPORTANT Installments for estimated tax payments are due on: April 18 June 15 Sept. 15 Jan 16, 2024 To settle your taxes, you must pay as you earn or receive income during the year. You can do this by withholding or making estimated tax payments. If your salary or pension’s income tax withholding is not enough, or you receive other types of income, such as interest, dividends, alimony, or self-employment income, you may need to make estimated tax payments. If you’re self-employed, estimated tax payments are usually required. In addition to income tax, estimated tax can cover self-employment tax and alternative minimum tax. How Do I Estimate My Taxes? To estimate your current year’s tax, start with your prior year’s income, deductions, and credits. Use Form 1040-ES to calculate your estimated tax, and make sure to estimate your income accurately to avoid penalties. If your estimated earnings are incorrect, you can use another Form 1040-ES worksheet to refigure your estimated tax for the next quarter.Please don’t hesitate to reach out to us if you have any further questions or concerns regarding estimated taxes. We are here to help and guide you through the process. To ensure a smooth filing experience, we strongly encourage you to schedule an appointment with us at your earliest convenience.Thank you for choosing our services. Schedule Now |