Estimated state tax payments are a way to pay tax on income that may not be subject to state withholding. This would include income from self-employment, interest, dividends, alimony (if applicable), rent, gains from the sale of assets, prizes, and even awards. You can also elect to make estimated payments if the amount of income tax being withheld from your salary, pension, or other income is not enough to cover your state tax liability.
It is possible, if you do not pay enough taxes through withholdings or estimated tax payments, you may be charged a penalty for underpayment of estimated taxes by your state. If you are filing as a sole proprietor, partner, S Corporation shareholder and/or self-employed, you will generally need to make estimated tax payments if you expect to owe tax of a certain amount at the time you file your return. Please check with your state for the specific amount.
State Estimated Payments which were made during the tax year can be entered into your account by going to:
- Federal Section
- Payments & Estimates
- State Estimated Payments
State estimated payment vouchers for next year are available within the Miscellaneous Forms section of most state returns. Once you enter the required information to create the state payment vouchers you may exit the state section and go to:
- Print/View Return- choose to print your state return only
- Print your 2020 Tax Return - you will find the payment vouchers near the end of the state forms