Quarterly Estimated Tax Payments are due on April 15th and if you have income that isn’t subject to withholding taxes, then it’s time to consult your virtual bookkeeper and get out your checkbook.
It doesn’t matter whether your untaxed money comes from a job, investments, alimony or prizes you’ve won, if it’s untaxed, you have to pay your quarterly estimated tax payments. If you don’t make this payment around the time the money was made, you could end up owing your taxes and penalties with interest.
Most people don’t have to worry about quarterly estimated tax payments because they fulfill those obligations through payroll withholding. But when that doesn’t happen, you have to get the money to the government yourself by filing Form 1040-ES vouchers.
Any income earned January 1 through March 31 is due on April 15th. You don’t have to be exact to the penny on your quarterly estimated tax payments, but rather, the IRS prefers you figure the total estimated tax for the entire year, divide it by four and send in equal payments according to the schedule. Use the worksheet on the Form 1040-ES to determine this amount. This form can be filed electronically, or you may choose to send a check by mail.
To learn more about quarterly estimated taxes, visit the IRS website.