If you’re self-employed, making estimated tax payments are the expected way to pay your tax liability as you earn. Ideally, when you file your tax return you should only owe a 10% remainder. Tax payments are paid in four installments: April 15, June 15, September 15 and January 15. Payments can be made by check or by phone.
You must make estimated tax payments for the current tax year if both of the following apply:
- You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits.
- You expect your withholding and refundable credits to be less than the smaller of:
- 90% of the tax to be shown on your current year’s tax return, or
- 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
If you have questions about estimated tax payments, let ETC help.