The IRS website has all the necessary forms for individuals and businesses to file their estimated quarterly taxes. Also available on the IRS website are instructions on how to complete and file the forms.Continue Reading
Estimated tax is paid quarterly when an individual or a business receives income that is not subject to withholding tax. This income includes self-employment income, interest, alimony, rent, dividends, gains from the sale of a home or asset, awards and prizes. Individuals may also be required to pay estimated tax if the amount of tax being withheld from pension, salary or other income is not enough.
Anyone who files as a sole proprietor, S corporation shareholder, partner or self-employed individual generally has to make estimated tax payments if it's expected that more than $1,000 of tax is owed when the tax return is filed, as of 2015.
Estimated tax is used to pay self-employment and income tax as well as other taxes reported on an individual's tax return. If an individual does not pay enough money through withholding or estimated taxes, a penalty may be imposed. If an individual does not pay enough by the due date of each tax payment period, penalty may be charged even if a refund is due when the tax return is filed.Learn more about Income Tax