Who needs to make quarterly income tax payments?

Posted on Jun 22, 2012

Any taxpayer that has income that is not subject to withholding may need to make quarterly estimated income tax payments.

If you have just started a new business or have income from investments, you need to determine if you are required to file tax estimates. Failure to pay quarterly tax estimates can lead to sizable tax penalties and interest. This is above and beyond the added income tax that is due at filing time.

Even if you have a regular job that pays wages subject to income tax withholding, you might have enough additional other income to necessitate paying estimates. Estimates are computed and filed on a quarterly basis with IRS Form 1040-ES.

If you have had a sizable increase in your interest or dividend income, sold an asset, or started a small business, let us assist you with your tax estimate determination.

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