{"id":2635,"date":"2020-01-09T14:10:00","date_gmt":"2020-01-09T14:10:00","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=2635"},"modified":"2020-02-17T13:42:56","modified_gmt":"2020-02-17T13:42:56","slug":"estimated-tax-who-when-how-to-pay","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/estimated-tax-who-when-how-to-pay\/","title":{"rendered":"Estimated Tax :Who ,When &#038; How to Pay ?"},"content":{"rendered":"\n<p>Internal Revenue Code provides that you need to estimate the federal tax liabilities continuously during the current year and make quarterly estimated tax payments to treasury. Basically , the tax rule imposes a penalty for not paying at least 90% of the total tax obligation for the current year.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-661d92ed68817\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-661d92ed68817\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.irstaxapp.com\/estimated-tax-who-when-how-to-pay\/#Who_needs_to_pay_quarterly_estimated_tax\" title=\"Who needs to pay quarterly estimated tax?\">Who needs to pay quarterly estimated tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.irstaxapp.com\/estimated-tax-who-when-how-to-pay\/#Estimated_Tax_Penalty\" title=\"Estimated Tax Penalty\">Estimated Tax Penalty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.irstaxapp.com\/estimated-tax-who-when-how-to-pay\/#How_to_Check_your_estimated_tax_obligation\" title=\"How to Check your estimated tax obligation?\">How to Check your estimated tax obligation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.irstaxapp.com\/estimated-tax-who-when-how-to-pay\/#Quarterly_Estimated_Tax_Due_Dates\" title=\"Quarterly Estimated Tax Due Dates \">Quarterly Estimated Tax Due Dates <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.irstaxapp.com\/estimated-tax-who-when-how-to-pay\/#How_to_pay_estimated_tax\" title=\"How to pay estimated tax?\">How to pay estimated tax?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_needs_to_pay_quarterly_estimated_tax\"><\/span><strong>Who needs to pay quarterly estimated tax<\/strong>?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you owe <strong>$1,000<\/strong> or more of taxes as per tax return, you will have to pay the estimated tax every quarter. Apart from that ,estimated tax has to be paid by the following types of taxpayers who <\/p>\n\n\n\n<ul><li> is self-employed. <\/li><li> is an independent contractor. <\/li><li>has more than one job but doesn\u2019t have each employer withhold taxes.<\/li><li>is a representative of a direct-sales or in-home-sales company.<\/li><li>participates in sharing economy activities where they are not working as employees.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Estimated_Tax_Penalty\"><\/span><strong>Estimated Tax Penalty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>W have written a separate article on <a href=\"https:\/\/www.irstaxapp.com\/penalty-for-underpayment-of-estimated-tax-simplified\/\">Penalty for Underpayment of Estimated Tax<\/a> . You may be facing an estimated tax penalty if your tax payment (including tax withheld ) is less  than<\/p>\n\n\n\n<ul><li> <strong>90 percent<\/strong> of the tax shown on the return for the current tax year  or <\/li><li><strong>100 percent<\/strong> of the tax shown on the return for the preceding tax year  <\/li><\/ul>\n\n\n\n<p>There are special rules for farmers and fishermen about the imposition of the penalty for estimated tax shortfall. Please refer to IRS <a href=\"http:\/\/links.govdelivery.com\/track?type=click&amp;enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwOTEwLjk0Njc1MTkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDkxMC45NDY3NTE5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MjA2MDY2JmVtYWlsaWQ9aXNhYWMub2Jhbm5vbkBjeWdudXMuY29tJnVzZXJpZD1pc2FhYy5vYmFubm9uQGN5Z251cy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;130&amp;&amp;&amp;https:\/\/www.irs.gov\/forms-pubs\/about-publication-505\" target=\"_blank\" rel=\"noopener\">Publication 505<\/a>,for more on penalties for underpayment of tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Check_your_estimated_tax_obligation\"><\/span><strong>How to Check your estimated tax obligation?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Just use IRS <strong>Form 1040-ES,<\/strong>  <strong><em>Estimated Tax for Individuals<\/em><\/strong>, to figure out estimated tax payments accurately. Generally, IRS also mail  Form 1040-ES  vouchers with instructions in late March to taxpayers who used this form last year. Secondly, those taxpayers who are subject to withholding tax (like employees, contractors etc) can use the <a href=\"http:\/\/links.govdelivery.com\/track?type=click&amp;enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwOTEwLjk0Njc1MTkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDkxMC45NDY3NTE5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MjA2MDY2JmVtYWlsaWQ9aXNhYWMub2Jhbm5vbkBjeWdudXMuY29tJnVzZXJpZD1pc2FhYy5vYmFubm9uQGN5Z251cy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;131&amp;&amp;&amp;https:\/\/www.irs.gov\/individuals\/irs-withholding-calculator\" target=\"_blank\" rel=\"noopener\">Withholding Calculator<\/a> on IRS.gov. to see if the tax payment obligation is met before filing of tax return.<\/p>\n\n\n\n<p>Further, an employee who expect to receive long term capital gains or qualified dividends, or employees who owe self-employment tax, alternative minimum tax, or tax on unearned income of minors should use the instructions and worksheets in <a href=\"http:\/\/links.govdelivery.com\/track?type=click&amp;enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwOTEwLjk0Njc1MTkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDkxMC45NDY3NTE5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MjA2MDY2JmVtYWlsaWQ9aXNhYWMub2Jhbm5vbkBjeWdudXMuY29tJnVzZXJpZD1pc2FhYy5vYmFubm9uQGN5Z251cy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;132&amp;&amp;&amp;https:\/\/www.irs.gov\/forms-pubs\/about-publication-505\" target=\"_blank\" rel=\"noopener\">Publication 505<\/a> to check whether they should change their withholding or pay estimated tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Quarterly_Estimated_Tax_Due_Dates\"><\/span>Quarterly Estimated Tax Due Dates <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The four quarterly payments for tax year 2019 need to be made by the date mentioned below:<\/p>\n\n\n\n<ul><li><strong>April 15, 2019:<\/strong> the due date for your  first quarterly estimated tax (QET) payment of estimated taxes on the income  made in January, February,  and March 2019. &nbsp;<\/li><li><strong>June 17, 2019:<\/strong> Pay quarterly estimated taxes on the income you made in April and May 2019.<\/li><li><strong>September 16, 2019<\/strong>:  Pay quarterly estimated taxes on the income you made in June, July, and August 2019 are due on this date.<\/li><li><strong>January 15, 2020:<\/strong>&nbsp;Quarterly estimated taxes for the months of September, October, November, and December 2019 are due on this date.<\/li><\/ul>\n\n\n\n<p>There are many <a href=\"https:\/\/www.irstaxapp.com\/11-irs-tax-help-tools-that-solves-common-problems\/\">IRS tax tools<\/a>. You can use  <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/p509.pdf\" target=\"_blank\" rel=\"noopener\">IRS tax calendar<\/a> and also add important dates to your online Calendar  by subscribing to the <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/irs-tax-calendar-for-businesses-and-self-employed\" target=\"_blank\" rel=\"noopener\">IRS Tax Calendar for Businesses and Self-Employed<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_pay_estimated_tax\"><\/span>How to pay estimated tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p style=\"background-color:#eed48a\" class=\"has-background\">The fastest and easiest way to make  <em>estimated tax payment online<\/em> .Just  use IRS <a href=\"http:\/\/links.govdelivery.com\/track?type=click&amp;enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwOTEwLjk0Njc1MTkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDkxMC45NDY3NTE5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MjA2MDY2JmVtYWlsaWQ9aXNhYWMub2Jhbm5vbkBjeWdudXMuY29tJnVzZXJpZD1pc2FhYy5vYmFubm9uQGN5Z251cy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;135&amp;&amp;&amp;https:\/\/www.irs.gov\/payments\/direct-pay\" target=\"_blank\" rel=\"noopener\">Direct Pay<\/a> or the Treasury Department\u2019s Electronic Federal Tax Payment System (<a href=\"http:\/\/links.govdelivery.com\/track?type=click&amp;enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwOTEwLjk0Njc1MTkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDkxMC45NDY3NTE5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MjA2MDY2JmVtYWlsaWQ9aXNhYWMub2Jhbm5vbkBjeWdudXMuY29tJnVzZXJpZD1pc2FhYy5vYmFubm9uQGN5Z251cy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;136&amp;&amp;&amp;https:\/\/www.irs.gov\/payments\/eftps-the-electronic-federal-tax-payment-system\" target=\"_blank\" rel=\"noopener\">EFTPS<\/a>). For filers paying by check, the check must be made payable to the \u201cUnited States Treasury.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Internal Revenue Code provides that you need to estimate the federal tax liabilities continuously during the current year and make quarterly estimated tax payments to treasury. Basically , the tax rule imposes a penalty for not paying at least 90% of the total tax obligation for the current year. Who needs to pay quarterly estimated [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2636,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[157],"tags":[1080],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/2635"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=2635"}],"version-history":[{"count":0,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/2635\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/2636"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=2635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=2635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=2635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}