Estimated Tax Payment

Estimated Tax Payment

Estimated Tax Payment means: a quarterly tax payment by a taxpayer on income that is not subject to withholding taxes, in an amount that represents a projection of the ultimate tax liability for the taxable period. To avoid a penalty for underestimation, estimated payments must equal 90% (for individuals and trusts; 100% for corporations) of the tax due or 100% of the tax paid the preceding year. However, a corporation with taxable income of $ 1 million or more for any of the 3 preceding years must base its estimated tax payments on the current-year liability only. Similarly, an individual with a prior year Adjusted Gross Income of more than SI50.000 can base, in income, their estimated tax payments on 110% of the prior year s liability See also declaration of estimated tax quarterly returns. Former IRC (check if this IRC provision is current here) §6315.

Estimated tax

If the taxpayer have income that’s not subject to withholding, such as investment or self-employment income, the taxpayer may have to make quarterly payments of the estimated amount needed to cover his or her expected tax liability for the year. the taxpayer can be penalized if estimated payments, combined with withholding from wages, don’t come within $1,000 or 90% of the tax owed for 2010 or 100% of the tax shown on his or her 2009 return. Higher income taxpayers – individuals with adjusted gross incomes of more than $75,000 or married taxpayers with joint AGIs of more than $150,000 – are subject to a higher standard to avoid an underpayment penalty. Their quarterly estimated payments must equal at least 90% of their 2010 tax bill or 110% of their 2009 tax liability.

Tax payments and Tax Refunds

Estimated Tax Payments

Learn about the Estimated Tax Payments issue in this American Tax Encyclopedia.

Estimated Tax Payments – where to send

Learn about the Estimated Tax Payments – where to send issue in this American Tax Encyclopedia.

Not able to Pay the IRS

Learn about the Not able to Pay the IRS issue in this American Tax Encyclopedia.

Installment Tax Payments

Learn about the Installment Tax Payments issue in this American Tax Encyclopedia.

Offer in Compromise

Learn about the Offer in Compromise issue in this American Tax Encyclopedia.

Tax Penalties and Interest

Learn about the Tax Penalties and Interest issue in this American Tax Encyclopedia.

Tax Refunds – Can the IRS keep my tax refund?

Learn about the Tax Refunds – Can the IRS keep my tax refund? issue in this American Tax Encyclopedia.

Tax Refund Status – checking

Learn about the Tax Refund Status – checking issue in this American Tax Encyclopedia.

More about Tax payments and Tax Refunds

IRS Appeals

Learn about the IRS Appeals issue in this American Tax Encyclopedia.

IRS Problem Resolution Office

Learn about the IRS Problem Resolution Office issue in this American Tax Encyclopedia.

IRS Taxpayer Advocate

Learn about the IRS Taxpayer Advocate issue in this American Tax Encyclopedia.

See Also

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.


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