Monday, December 22, 2008

Quarterly Estimated Payments for IRS 1040

Estimated tax payments can be confusing. However, they need not be. Estimated tax is the method used to pay tax on income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.). If you are self employed, you may need to make estimated payments to keep from having to pay an underpayment penalty when you file your income tax return.

You can download a 1040-ES form from the IRS website. Search for estimated tax and a list of available forms will come up. You can choose the correct year and download the form. It should include a worksheet that you can use to calculate your estimated tax payment. Or, you can use your last year's tax return if your income is approximately the same as last year.

The payment deadlines are:

1st payment - April 15
2nd payment - June 15
3rd payment - September 15
4th payment - January 15 (or you do not need to make the payment if you file your return by February 2nd)

If you have any questions, or if there is something that you would like for me to blog on, let me know. I will be glad to help.

If you would like help preparing your tax return, give me a call.

Christie Pegoda
SD Virtual Assistant
phone 501-205-4083
fax 888-243-0865

No comments:

Post a Comment