Estimated Tax Payments Due This Thursday

By: Stacey Nickens

While the IRS has moved the income tax deadline to May, estimated tax payments are still due this Thursday, April 15. Estimated taxes are paid by certain individuals who earn income through interest, dividends, alimony, self-employment, capital gains, prizes, or awards. These estimated tax payments go towards income tax, self-employment tax, and alternative minimum tax, depending on your sources of income. You may also have to make quarterly estimated tax payments if the amount of income tax withheld from your paycheck is not enough.

Individuals, sole proprietors, partners, and S corporation shareholders generally have to make estimated tax payments if their tax bill is projected to be greater than $1,000 come filing time, even after accounting for withholdings and tax credits. Corporations who expect to owe $500 or more will also generally make estimated tax payments. You can click here to learn more about who has to make estimated tax payments.

You will use Form 1040-ES to pay your estimated taxes. Keep in mind that you may face a penalty if you don’t pay enough estimated taxes during the year.

Depending on where you live, your state income taxes may also be due on April 15. Check with your state’s tax agency to find your state income tax filing deadline.