Individuals who are either sole proprietors or S corporation shareholders will benefit from making estimated tax payments. Another great key to estimated tax payments is that if a corporation is expecting to make $500 or more when their tax return is filled.
Some do not have to pay estimated tax, however. Those who meet the following three requirements will fall into this category;
For those who must file estimated tax, form 1040-ES is helpful in figuring out what the amount will be. The calculations include the expected adjusted gross income, taxes, deductions, taxable income, and credits for the year. It is always a great idea to use the information you have of the previous year's taxes to assist you!
Now that you know what needs to be added together, when do you pay your estimated taxes? There are four payment periods with online payments, phone payments, or mail payments. Electronic is always the easiest.
If you need assistance in understanding, completing, or filing your estimated taxes, we are here to assist you! Schedule an appointment to meet with one of our tax experts!
The Pathways Team