Questions tagged [estimated-taxes]

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How to mail quarterly estimated taxes using multiple money orders?

How would one make a quarterly estimated tax payment using money orders when the amount to be paid that quarter is greater than the limit on a money order? Let's assume other options such as online ...
Neel Kamath's user avatar
1 vote
1 answer
175 views

How to pay quarterly estimated taxes when IRS doesn't let me pay online?

I moved to the US in 2023. I'm a citizen. I started earning income in 2023. I work as a software engineer as an independent contractor. This means I need to pay quarterly estimated taxes. I don't ...
Neel Kamath's user avatar
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1 answer
83 views

Can I apply estimated tax payments in my name and SS number for the year to spouse who will file separately this year?

Wife and I always filed a joint return. My name and SS number have been used for quarterly installment payments. This was not an issue when filing jointly. Because of her excessive medical expenses ...
Ken Kirsner's user avatar
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1 answer
64 views

If you have zero income after a capital loss carryover, is your estimated tax safe harbor for the next year also zero?

For example if you have (assume no other income): 2022 $600K capital loss carried forward 2023 $300K capital gains 2024 $1.5M capital gains Do you have safe harbor to pay 0 estimated tax until Jan ...
rmrmqqq's user avatar
3 votes
2 answers
1k views

Why did I get MI-1040ES - Michigan Estimated Income Tax for Individuals form in the mail?

I recently got something from the Michigan Department of Treasury in the mail that looks like 4 sort of coupons where I tear a section out and write down payment amount (not sure how much to write ...
JonH's user avatar
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Estimated Taxes and Solar Tax Credit [duplicate]

Can I apply the anticipated solar tax credit for my system that was installed in 2023 to my Form 1040-ES estimated tax payments (i.e. lowering them by that amount) without incurring an underpayment ...
Melkkuh's user avatar
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3 votes
1 answer
430 views

Avoiding penalties and interest on long-term capital gains taxes without paying estimated taxes

I have a question about tax penalties and interest Suppose my total tax due was 30,000 last year, and all of that was due to employment. Suppose this year I expect to have about the same 30,000 taxes ...
Jules Yasuna's user avatar
1 vote
1 answer
86 views

How to determine which dividends are qualified vs non-qualified when calculating quarterly estimated taxes?

I have enough dividend income that I need to pay quarterly estimated taxes. When I look at my monthly statements, I'm not seeing any indication of which dividends are qualified vs not, but I need to ...
Andrew's user avatar
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3 votes
1 answer
609 views

Need help understanding Estimated Tax payments and safe harbor rules

I have not worked for the first half of this year and have some modest dividend/interest income that would end up being less than $1000 in taxes by the end of the year, so I have not been paying any ...
Andrew's user avatar
  • 145
1 vote
2 answers
109 views

I switched from self-employed to FTE in May, do I need to continue to pay estimated tax?

If I had continued as self-employed, I would definitely pay estimated taxes in June, September, and January. But since I switched in May, I'm not sure if I need to do that (i.e. if I'd be overpaying a ...
Matt Chambers's user avatar
2 votes
3 answers
2k views

How to estimate "estimated" taxes?

I am trying to figure out how to estimate quarterly tax payments. After some wonderful help on this forum, it seems I'll need to do this for my state, but not for the federal government. From what I ...
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How to best forecast tax liability for the purposes of estimated tax payments?

How can you "expect" to know if you need to pay quarterly taxes? I am on a university fellowship where there is no withholding. I am married, filing jointly. To file quarterly, my ...
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28 votes
1 answer
6k views

If I overpay estimated taxes in Q1, am I allowed to underpay in the other quarters?

I'm an independent contractor and I sent in my first quarterly estimated federal tax payment for 2023, but I realized that I went way over. Is it possible to pay less in the coming three quarters (...
fishingforgoats's user avatar
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1 answer
79 views

How can I pay estimated taxes when I'm no longer filing jointly?

Suppose that I am married and have been filing taxes jointly with my spouse for years, with my spouse as the primary taxpayer. For the upcoming tax year (here, tax year 2023, since at the time of ...
wchargin's user avatar
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3 votes
2 answers
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Is the final estimated tax payment required if you will get a refund without it?

We have paid the first three estimated tax payments for 2022, but we are on track to get a refund without the final one. If we are planning to file by mid-February, will the IRS still expect us to ...
Will Butler's user avatar
2 votes
2 answers
62 views

Quarterly Estimated Payments When Income Falls Drastically (US)

I'm self employed and my income tends to be pretty volatile, but every year so far it has increased since I started paying taxes. For example, it increased substantially from 2021 to 2022, so for my ...
jjjjjjjjjjjj343's user avatar
0 votes
1 answer
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Uneven Income and Estimated Taxes

My income during the year is uneven. The major part of my income is received during the fourth quarter when I take RMD and also do Roth conversions. I pay estimated taxes during the fourth quarter. ...
V. Chandrasekhar's user avatar
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2 answers
127 views

I guesstimated my taxes and overpaid a bit before April 15. But I have not filed. Where can I file and not pay?

I am filing late so I guesstimated my tax bill and overpaid it directly on irs.gov (to prevent penalties. So I have paid a bit too much, but have not filed. Where (Turbotax?) can I file but not pay? ...
Derek Fulton's user avatar
6 votes
2 answers
2k views

Will I be penalized for not making an estimated payment in the first quarter for a side gig that started in the second quarter?

I picked up a side-gig on March 30th, that pays me at the end of each month, so my first pay check will be towards the end of April, which is in the second quarter. It seems I have two options to ...
James Dunn's user avatar
2 votes
2 answers
580 views

Can I pay a previous quarter's estimated taxes with current quarter?

I've never done estimated taxes before and I found out today is the last day for the June 1 - August 31 period to pay estimated taxes. I went to the IRS site and saw how I can do it but there is ...
JoeL's user avatar
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1 answer
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Significant Capital Gain -- how to pay quarterly estimate taxes correctly?

My understanding is if you are expecting to owe more than 2k in taxes you are supposed to pay quarterly estimate taxes. If you don't you might pay a penalty interest rate on the taxes owed to the IRS (...
hellyale's user avatar
  • 145
2 votes
1 answer
116 views

1040-ES Line: 15. What to put here if I started self-employment in Q2?

I've recently started work as an independent contractor starting in April and I'm trying to calculate my estimated quarterly taxes for Q2. Line 15 on 1040-ES says: "If the first payment you are ...
Klam's user avatar
  • 123
3 votes
1 answer
170 views

Filing jointly, can I pay estimated taxes on behalf of my wife's side work?

Quick background: I have an EFTPS account where I've paid estimated taxes in the past for some side work in programming. I haven't used it in years. My wife recently started a free lance writing gig ...
Andrew's user avatar
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1 vote
1 answer
133 views

How do USA Estimated Tax Payments Work?

I repositioned my investments and sold a large quantity of stock in the first quarter of this year. As such, for the first time in a long time, I will need to pay estimated taxes. However, I am not ...
Toaster's user avatar
  • 265
2 votes
1 answer
501 views

My 2021 withholding has already paid 100% of my 2020 tax liability. Can I skip paying estimated taxes on self-employment income for the rest of 2021?

My unique situation is as follows: My 2020 AGI was around $20k. My 2020 total tax (Form 1040 line 24) was only $700. My 2021 income will be much higher. I had a W-2 job from January through April of ...
form2210's user avatar
4 votes
2 answers
190 views

Can I pay equal amounts of quarterly tax if my income is uneven?

My money manager typically reallocates my portfolio early in the year. That means the majority of my capital gains occur in Q1. Am I required to adjust for this in my quarterly taxes, trying to pay ...
Todd's user avatar
  • 143
5 votes
0 answers
91 views

For 2021, What is the most Tax-Advantageous Way to Make a Charitable Donation that is Larger than my AGI?

I may be making a charitable donation this year (2021) to my school; it will be about 1.5 times my AGI. What is the most tax-advantageous way to make this donation? If I make the donation in stock ...
ab2's user avatar
  • 1,900
3 votes
1 answer
248 views

Deciding if you need to make estimated tax payments

I am helping a friend with her taxes. The following is a quote from the instructions for form 1040ES: In most cases, you must pay estimated tax for 2021 if both of the following apply. You expect to ...
Bob's user avatar
  • 1,773
4 votes
1 answer
86 views

I missed the last estimated tax for 2020, where to pay then?

I just realized that I missed the last estimated tax for the 2020 year. There is no 2020 option on the "Tax Period for Payment" field on the IRS "Direct Pay" site. What I can do? ...
peterB's user avatar
  • 421
2 votes
0 answers
57 views

Made large capital gains on Dec 31, 2020. Should I send a check to the IRS right-away earlier than sending my return for 2020? [duplicate]

In the US, I made large capital gains on the last few days of 2020. It was not so much anticipated, so I didn't send the IRS any estimated taxes for these gains. I am afraid of possible penalties for ...
throwaway_fngriewbwqi's user avatar
11 votes
4 answers
3k views

One-time estimated tax payment for windfall

I recently sold an investment that has generated a capital gain that is a substantial fraction of my 2020 income. My brokerage did not withhold tax (I think that is normal), but I am now materially ...
user217285's user avatar
3 votes
3 answers
302 views

Can you pay "taxes as you go" in the US?

If you have a steady income you pay taxes continuously based on the assumption of the final income per year. However if your income is very spikey you may have no idea how much you will be making in a ...
Hilmar's user avatar
  • 7,860
2 votes
2 answers
108 views

How to pay tax on IRA to Roth rollover

I recently changed employers, and merged my old retirement account with a Roth account I have with an independent company. A little less than half the contributions were pre-tax, and I understand I ...
Aaron's user avatar
  • 151
0 votes
1 answer
53 views

I made a payment for Form 1040-ES via IRS.gov/payments. Do I have to fill any form in addition to that?

I made a payment for Form 1040-ES via https://www.irs.gov/payments. Do I have to fill any form in addition to that?
Franck Dernoncourt's user avatar
0 votes
1 answer
98 views

When paying the 1st and 2nd quarters of estimated tax payments (Form 1040-ES) due on July 15, 2020, should I make 1 or 2 payments on irs.gov/payments?

I read on https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes: First and second quarter estimated tax payments normally due April 15 and June 15 are postponed to July 15, ...
Franck Dernoncourt's user avatar
1 vote
1 answer
56 views

Do I need to pay Estimated Taxes on Qualified dividend income if I fall in the 0% Long-Term Capital Gains tax bracket?

Basically I make ~$21000 in income from work, and $1000 in dividends. So, being below $40k in income, I technically owe 0% on the qualified dividend income, but I'm not sure if I pay the IRS and get a ...
SmugDoodleBug's user avatar
2 votes
2 answers
230 views

Tax safe harbor rule with estimated payments (no tax liability on prior year)

I am a Spaniard and immigrated to the US on January of this year. I worked in the US in 2015 & 2016 and filed taxes for those years, but I was not in the US during 2018 so I had no tax liability ...
jgozal's user avatar
  • 209
1 vote
1 answer
156 views

Self employed half the year unemployed the rest. Do I pay quarterly taxes?

I was unemployed from January-June and started becoming self-employed from June-December. Do I need to pay quarterly taxes? I will owe more than $1,000 in taxes for being self-employed half this ...
Delmon Young's user avatar
3 votes
1 answer
3k views

Can I make multiple estimated tax payments to the IRS in a single quarter?

I know I'm required to make at least one payment every quarter before a certain date, but can I make multiple, smaller payments? Will it cause me any trouble if I do? The most I could find was: ...
Shelvacu's user avatar
  • 131
1 vote
1 answer
41 views

HMRC Tax Returns for following year

If my startup business is running at a loss after adding costs of supplies and money come in, how would this affect income tax in the following year? As any gains in the following year would need to ...
Chris Rogers's user avatar
0 votes
2 answers
71 views

Amend previous return to move estimated payment?

In a complicated situation for 2017 taxes (settled in 2018) (Estimated State payment too big --> money back; + 2018 Tax Reform), it seems like I'd be better off had I made a State Tax estimated ...
ILoveCoding's user avatar
8 votes
3 answers
1k views

Estimated State payment too big --> money back; + 2018 Tax Reform

In Apr 2018, for 2017 taxes, I filed for extension and made a payment for estimated tax for the State & local taxes of NY of 20K. I was completely wrong, and ended up getting a State refund of 30K ...
ILoveCoding's user avatar
3 votes
2 answers
107 views

US Estimated Taxes-- what can I do if I had a very weak Q1, but expect a strong Q2-Q4?

I'm self employed and when I have the contractor hours, I make good money, I'm faithful to set more money aside than I need for my taxes and I even set additional money in case I hit a "dry spell". ...
RLH's user avatar
  • 835
1 vote
1 answer
536 views

CA Safe Harbor Estimated Taxes

Assuming no income taxes are withheld, does paying 30%, 40%, 0%, and 30% (33, 44, 0, and 33 for high earners) of previous year taxes by each respective estimated tax due date meet safe harbor ...
arcyqwerty's user avatar
  • 1,271
0 votes
1 answer
2k views

Would it be a good idea to start my LLC while I owe the IRS?

I’m a self-employed cosmetologist I filed taxes last year and had to pay back $2500 I’m on a payment plan right now and they told me once I file again it will void the payment plan. So, would starting ...
DRenaud's user avatar
2 votes
2 answers
248 views

Do I have to pay estimated taxes?

I had a financial windfall in 2018, pre-paid taxes to account for this, and ended up getting a refund. Turbotax included several 1040-ES forms for paying estimated taxes for 2019, I assume based on my ...
user83547's user avatar
5 votes
0 answers
1k views

Can I make estimated tax payments instead of withholding from my paycheck? [duplicate]

My employment provides me with a W-2 at the end of the year, and I currently have taxes withheld from my paychecks. In the opposite of this question, Pay estimated tax using W-4 withholding instead of ...
Hari's user avatar
  • 419
2 votes
1 answer
119 views

1040-ES Late Payment

quick question: I'm new to paying estimated taxes and I somehow forgot to file my last estimated taxes by Jan 15th this year - the payment due was for Sept-Dec 2018. I just realized this, and I want ...
Melissa S's user avatar
1 vote
0 answers
46 views

Estimated Tax Penalty

Instructions for Form 1040 state: Because Form 2210 is complicated, you can leave line 23 blank and the IRS will figure the penalty and send you a bill. We won't charge you interest on the ...
Adam Johns's user avatar
0 votes
1 answer
67 views

Late estimated quarterly payment because state failed to act on ACH authorization

In October I submitted payment for Q3 taxes to PA and received a confirmation number for my payment. But they failed to act on that authorization until January, when they must have noticed it at the ...
zkurtz's user avatar
  • 101