At times our clients are required to pay estimated income tax payments. We are often asked about estimated taxes as well. To help explain the confusion around estimated taxes, we provided the basic information below.
How do you know if you need to make estimated tax payments for 2018?
You are required to pay estimated taxes if you expect to owe at least $1,000 in federal tax for 2018 and you expect your withholding to be less than the smaller of 90% of the tax shown on your 2018 return or 100% of the tax shown on your 2017 tax return.
When do you need to make the estimated tax payments?
The payments are roughly on a quarterly basis.
Payment #1 (Jan 1 to Mar 31) Due April 17, 2018
Payment #2 (Apr 1 to May 31) Due June 15, 2018
Payment #3 (Jun 1 to Aug 31) Due September 17, 2018
Payment #4 (Sep 1 to Dec 31) Due January 15, 2019
You are not required to make the final payment if you file your return by January 31, 2019 and pay the tax balance due.
If you think you need to may need to make estimated tax payments please reach out and we can help. Every situation is unique.