American taxpayers can find estimated tax information on the Internal Revenue Service website through Form 1040-ES and Publication 505. Corporations use Form 1120-W and Publication 542 for information regarding businesses that make tax payments to the IRS throughout the year.
Estimated taxes create a way for taxpayers to make payments for income that is not subject to withholding. Income from self-employment, interest, dividends, rent and prizes falls into this category. Individuals may also pay estimated tax if the amount withheld by an employer is not enough.
In general, taxpayers must make estimated tax payments if they expect to owe $1,000 or more in taxes when they file income tax returns. Citizens can avoid paying estimated taxes by increasing the amount of money an employer withholds from pay checks. To change withheld amounts, individuals fill out Form W-4.
As of 2015, estimated taxes are paid in four payment periods, with the first payment due April 15 of each year. The second payment is due June 15, and the third is due Sept. 15. The final payment must be made by Jan. 15. Penalties may be assessed for underpayment or late payments. These penalties are calculated on Form 2210, or the IRS can figure the penalty for taxpayers. Individuals can file amended estimated taxes if payment amounts increase or decrease during a tax year.