RETAILOBSERVER.COM NOVEMBER 2018
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C
ertain taxpayers must make estimated tax payments throughout
the year. Taxpayers must generally pay at least 90% of their
taxes throughout the year through withholding, estimated tax
payments or a combination of the two. If they don't, they may owe an
estimated tax penalty.
For tax year 2018, the remaining estimated tax payment due dates is
January 15, 2019.
Estimated tax is the method used to pay tax on income that is not
subject to withholding. This income includes earnings from self-
employment, interest, dividends, rents, and alimony. Taxpayers who do
not choose to have taxes withheld from other taxable income should
also make estimated tax payments. This other income includes
unemployment compensation and the taxable part of Social Security
benefits.
The IRS urges everyone who works as an employee and who also
earns or has income from other sources to perform a Paycheck Checkup
now. Doing so will help avoid an unexpected year-end tax bill and
possibly a penalty when the taxpayer files their 2018 tax return next year.
They can do a checkup using the Withholding Calculator on IRS.gov.
Here are some things to know for taxpayers who make estimated
payments:
• Taxpayers can pay their taxes throughout the year anytime. They must
select the tax year and tax type or form when paying electronically.
• Filers paying by check should make it out to the "United States
Treasury" and indicate the tax year and type of taxes they are paying.
• Taxpayers in presidentially declared disaster areas may have more
time to make these payments without penalty.
• For easy and secure ways to make estimated tax payments, use
the IRS Direct Pay or the Electronic Federal Tax Payment System.
IRS.gov/payments has information on all payment options.
• Taxpayers can find more information about tax withholding and
estimated tax at the Pay As You Go page on IRS.gov.
• Publication 505, Tax Withholding and Estimated Tax, is another
resource for taxpayers. Publication 505 has worksheets and
examples, which can help taxpayers determine whether they should
pay estimated tax.
For IRS tax tips and information on federal taxes, visit www.IRS.gov.
T A X T I P S
HERE'S HOW AND WHEN TO
PAY ESTIMATED TAXES
