How to Determine if You Need to Make Estimated Tax Payments

💰You may need to make estimated tax payments if you expect to owe over $1,000 in taxes for the year.

📅To determine your estimated tax payments, use the previous year's tax liability, divide it by four, and pay quarterly.

🧮Exceptions to estimate tax payments include having already paid an amount equal to or greater than your prior year's tax liability or paying at least 90% of your current year tax liability.

🏷️Remember that estimated tax payments are estimates and can be adjusted as necessary.

✅Ensure you make your estimated tax payments on time to avoid penalties or interest.

Do I need to make estimated tax payments?

—You may need to make estimated tax payments if you expect to owe over $1,000 in taxes for the year.

How do I determine my estimated tax payments?

—To determine your estimated tax payments, use the previous year's tax liability, divide it by four, and pay quarterly.

What are the exceptions to estimated tax payments?

—Exceptions include having already paid an amount equal to or greater than your prior year's tax liability or paying at least 90% of your current year tax liability.

Can I adjust my estimated tax payments?

—Yes, estimated tax payments are estimates and can be adjusted as necessary.

What happens if I don't make estimated tax payments?

—Failure to make estimated tax payments may result in penalties or interest.

00:00Learn how to determine if you need to make estimated tax payments and how much to pay.

02:10Use the previous year's tax liability and divide it by four to estimate your quarterly tax payments.

05:53Calculate your estimated tax payments using the provided calculator and adjust as necessary.

06:38Make your estimated tax payments on time to avoid penalties or interest.