|
Estimated tax is the method used to pay tax on income that is not
subject to withholding. This includes income from self-employment,
interest, dividends, alimony, rent, gains from the sale of assets,
prizes and awards. You also may have to pay estimated tax if the
amount of income tax being withheld from your salary, pension, or
other income is not enough.
Estimated tax is used to pay income
tax and self-employment tax, as well as other taxes and amounts
reported on your tax return. If you do not pay enough through
withholding or estimated tax payments, you may be charged a penalty.
If you do not pay enough by the due date of each payment period, you
may be charged a penalty even if you are due a refund when you file
your tax return.
To figure your estimated tax, you must figure your expected gross
income, taxable income, taxes, deductions, and credits for the year.
http://www.irs.gov/pub/irs-pdf/f1040es.pdf
For more information, please contact our offices at
info@mbflegal.com or call us directly at 312-466-0800.
Information
courtesy of the Internal Revenue Service, United States
Department of the Treasury.
|
