Here are the two kinds of taxes to know about:. Self-employment tax: This tax is generally If you owe less than that, you can just pay your taxes on that income when you file your annual tax return. Remember, this is just an estimate. Depending on your income, the tax year, your filing status and eligible deductions, your quarterly taxes will vary.
There are several ways you can go about paying your quarterly taxes:. Pay online. You can go to the IRS payment page and set up online payments for your taxes using a bank account or a debit card. Pay by phone. And there are a couple more things you need to remember. First, remember the taxes above are just an estimate.
You still need to file an annual tax return along with everyone else, showing what you actually made during the year. And second, if business is going well and you see that your income is going to be higher or lower than you thought it would be, you can always adjust your estimated taxes each quarter. If not, you might end up paying more on Tax Day if you underpaid or get a tax refund if you overpaid, just like everyone else.
Take our quiz to find out if you should self-file or work with a tax pro this year. For estimated tax purposes, the year is divided into four payment periods. You may send estimated tax payments with Form ES by mail , or you can pay online , by phone or from your mobile device using the IRS2Go app.
Visit IRS. Using EFTPS, you can access a history of your payments, so you know how much and when you made your estimated tax payments.
For additional information, refer to Publication , Corporations. There are special rules for farmers, fishermen, and certain higher income taxpayers. However, if your income is received unevenly during the year, you may be able to avoid or lower the penalty by annualizing your income and making unequal payments. Pursuant to Notice PDF , the due date for your first estimated tax payment was automatically postponed from April 15, , to July 15, Likewise, pursuant to Notice , the due date for your second estimated tax payment was automatically postponed from June 15, , to July 15, The IRS lowered to 80 percent the threshold required for certain taxpayers to qualify for estimated tax penalty relief if their federal income tax withholding and estimated tax payments fell short of their total tax liability in In general, taxpayers must pay at least 90 percent of their tax bill during the year to avoid an underpayment penalty when they file.
On January 16, , the IRS lowered the underpayment threshold to 85 percent and on March 22, , the IRS lowered it to 80 percent for tax year This additional expanded penalty relief for tax year means that the IRS is waiving the estimated tax penalty for any taxpayer who paid at least 80 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two.
Taxpayers who have not filed yet should file electronically. The tax software was updated and uses the new underpayment threshold and will determine the amount of taxes owed and any penalties or waivers that apply.
This penalty relief is also included in the revision of the instructions for Form , Underpayment of Estimated Tax by Individuals, Estates, and Trusts. Taxpayers who have already filed their federal tax return but qualify for this expanded relief may claim a refund of any estimated tax penalty amount already paid or assessed. Taxpayers cannot file this form electronically. Important Tax Dates.
How to Estimate Federal Withholding. Tips for Paying Estimated Taxes. Estimate your tax refund and where you stand Get started. See if you qualify for a third stimulus check and how much you can expect Get started. Easily calculate your tax rate to make smart financial decisions Get started. Estimate your self-employment tax and eliminate any surprises Get started.
Know what dependents credits and deductions you can claim Get started. Know what tax documents you'll need upfront Get started. Learn what education credits and deductions you qualify for and claim them on your tax return Get started. The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice.
Skip To Main Content. Figuring when and how to pay If you're an employee, your employer withholds taxes from every paycheck and sends the money to the IRS, and probably to your state government as well. You may owe estimated taxes if you receive income that isn't subject to withholding, such as: Interest income Dividends Gains from sales of stock or other assets Earnings from a business Alimony that is taxable Do I need to pay estimated taxes?
That depends on your situation. The rule is that you must pay your taxes as you go. Which option should I choose? How should I figure what I owe?
Consider paying with your refund One easy way to get a jump on paying your next year's taxes is to apply your previous year's tax refund to your next year's taxes. What if I don't pay? Should I pay in equal amounts? If you had your previous year's overpayment credited to your current year's estimated tax payments.
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