Estaimated Taxes ES

Estimated taxes is the method used to pay tax on income that is not subject to withholding.
This includes income from self-employment, interest, dividend, alimony, rent, gains from the sale of assets, prizes and awards.

You may also have have to pay estimated tax if the amount of income tax being withheld from your salary, pension or other income is not enough.

You usually do not have to pay estimated taxes if:

* you had no tax liability for the previous year
* you were a US citizen or resident for the whole year
* your previous year taxes covered a 12 month period

Or if your previous year tax liability was zero and you did not have to file an income tax return.


You usually will have to pay estimated tax payments if the following applies:

* you expect to owe AT LEAST $1000 in taxes for the coming year, after subtracting your withholding and credits

* You expect your withholding and credits to be less than the smaller of

1. 90% of the tax to be shown on your upcoming tax return, or

2. 100% of the tax shown on your previous tax return. Your previous year tax return must cover all 12 months.

Estimated Taxes are paid for the Period of:
Jan 1st - March 31 on April 15
April 1st to May 31 on June 15
June 1 to August 31 on September 15
and
Sept 1st to December 31 on January 15 of the next year.