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Student Taxes

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