I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, Texas, New York, California and elsewhere.
You are required to make estimated tax payments if you expect to owe at least $1,000 in taxes for the year and your tax liability is not going to be fully covered by your employer through withholding. The estimated tax payments help you to pay your taxes in a timely manner and avoid owing a large amount at the end of the year.
Estimated taxes are typically required for individuals who are self-employed, have income from investments, or have other types of income that are not subject to withholding. The estimated tax payments are based on your projected income for the year and are typically made in four equal payments throughout the year. The due dates for estimated tax payments are April 15, June 15, September 15, and January 15 of the following year.
By making estimated tax payments, you can avoid the possibility of underpayment penalties. The IRS charges interest on any unpaid taxes, and if you don't make estimated tax payments, you could end up owing a significant amount in interest and penalties when you file your tax return.
It's important to note that not everyone is required to make estimated tax payments. If you have a regular job and your employer is withholding enough taxes to cover your liability, you may not need to make estimated tax payments. However, it's always a good idea to check with a tax professional or the IRS to determine if you are required to make estimated tax payments and how much you should pay.
If you or someone you know has back taxes to deal with, don't
hesitate to contact us immediately at 303-499-2700 or by email
825 S Broadway
Boulder, CO 80305
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