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Federal Tax PreparationFederal tax preparation 6. Federal tax preparation Estimated Tax Table of Contents Who Must Make Estimated Tax Payments Estimated tax is a method used to pay tax on income that is not subject to withholding. Federal tax preparation This income includes self-employment income, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Federal tax preparation Income tax generally is withheld from pensions and annuity payments you receive. Federal tax preparation However, if the tax withheld from your pension (or other) income is not enough, you may have to pay estimated tax. Federal tax preparation If you do not pay enough tax through withholding, by making estimated tax payments, or both, you may be charged a penalty. Federal tax preparation Who Must Make Estimated Tax Payments If you had a tax liability for 2013, you may have to pay estimated tax for 2014. Federal tax preparation In most cases, you must pay estimated tax for 2014 if both of the following apply. Federal tax preparation You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Federal tax preparation You expect your withholding and refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. Federal tax preparation The 2013 tax return must cover all 12 months. Federal tax preparation If all of your income will be subject to income tax withholding, you probably do not need to make estimated tax payments. Federal tax preparation For more information on estimated tax, see Publication 505. Federal tax preparation Prev Up Next Home More Online Publications
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Structure of the U.S. Education System
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Foreign Visitors Driving in the U.S.
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