If you are making quarterly estimated payments, you can use the payment vouchers to assist you in keeping track of your payments.
Do I need to make quarterly estimated payments?
Estimated taxes are used to pay tax on income that is not subject to withholding. This could be income from being self-employed, interest, dividends, alimony, rent, capital gains, prizes and awards. Estimated taxes may also need to be paid if the tax being withheld from your income is not enough.
A taxpayer will have to make quarterly estimated tax payments for the current year if both of the following apply:
- You are expected to owe at least $1,000 after all withholdings and credits have been subtracted.
- You expect your withholdings and credits to be less than the smaller of:
- 90% of the tax on the current return or
- 100% of the tax shown on your prior year return.
How much do I need to pay each quarter?
To determine how much you should pay each quarter, complete the following worksheet or visit the IRS website for 1040ES instructions. Enter the quarterly amounts in the program to print payment vouchers for the current tax year.
