Estimated Tax Payments
You pay taxes on money you earn throughout the year. These taxes are normally taken out of your paycheck in the form of withholding. However, in some situations the amount withheld is not enough to cover the amount of taxes you owe, and this can lead to a penalty.
Additionally, if you are self-employed you will need to make estimated tax payments if you expect to owe $1,000 or more in federal tax.
To avoid that penalty, many choose to make estimated payments throughout the year.
How much should the estimated payments be?
At RPM Tax Consulting we recommend meeting with your tax preparer to calculate your estimated tax. If you would like to meet with one of our consultants, please feel free to contact us and make a tax planning appointment.
If you prefer to do it yourself you can calculate your estimated tax payments with form 1040ES worksheet. When using this method, you should recalculate your estimated tax at least four times throughout the year.
When are estimated tax payments due?
• 1st payment: April 15, 2019
• 2nd payment: June 15, 2019
• 3rd payment: September 15, 2019
• 4th payment: January 15, 2020
If you have any questions about estimated tax or any other tax subject, please set up an appointment with one of our tax consultants today.