Estimated taxes Feed

Last week I signed onto the Electronic Federal Tax Payment System, known in acronym-speak as EFTPS (eff-tips), and authorized our third quarter estimated tax payment to be made by our bank on Sept. 15. Click image to download full 1040-ES package. I've used EFTPS for eight years and although there were some early bumps, I'm pretty happy with the system. A lot of folks, though, are put off by EFTPS. One of the biggest complaints is that it takes some time for the account to be operational. The IRS has speeded up the process, but if you are thinking today... Read more →


We're well into the second full week of June and you know what that means. Yes, it does mean that time flies, regardless of whether you're having fun. And yes, it also means that parents must figure out ways to deal with kids who are now out of school. But it also means that it's time to pay the year's second estimated tax installment. Click image to download the 2014 Estimated Tax package from IRS.gov This week's Weekly Tax Tip looks at what's involved with these four extra tax payments that lots of folks have to make. Who has to... Read more →


It's one day until the tax filing deadline. Are you panicking yet? Don't. You've got time. Technically, we have a day and a half (sorry for not posting sooner; one of those crazy days) to get our returns done -- and by "we," I mean all y'all planning to send in a 1040 because I've already filed an extension. The Internal Revenue Service accepts as timely filed returns that are postmarked or e-filed by midnight April 15 local time, so that gives you today and tomorrow. To help you cope with any still pending tax issues (remember, tomorrow is the... Read more →


The U.S. tax system is based on the pay-as-you-earn concept. Every worker who gets a paycheck knows this by the amount of income and payroll taxes withheld each payday. If you get money from other sources where withholding isn't in effect, Uncle Sam expects you to take care of your due taxes in a timely fashion, too. The mechanism for this is estimated tax payments. Estimated taxes are paid via four extra payments filed with the Internal Revenue Service using Form 1040-ES. Click image to access the PDF version of Form 1040-ES, including all vouchers and instructions. They are due... Read more →


It's finally here! Everyone's favorite month. The final 31 days in which you can take steps to reduce your 2013 tax bill. What? You thought I was talking about Christmas? C'mon! If you've been reading the ol' blog for the last eight years, you know I started my tax musings by referring to any consideration of taxes as the most wonderful time of the year. And while taxes must share at least 25 of December's days with the big annual gift-giving event, this final month of the year is a great time to give yourself a smaller tax bill. So... Read more →


Looking for something to do this weekend? If you pay estimated taxes on earnings that aren't subject to withholding, then you can work on your third 1040-ES filing for the 2013 tax year. Click image to access the PDF version of Form 1040-ES, including all vouchers and instructions. In case you haven't yet encountered estimated taxes, these four extra payments are for such taxable income as investment and self-employment earnings, as well as unexpected income like prizes, gambling winnings or a lottery jackpot. Estimated taxes are the way to meet the tax code's pay-as-you-earn system that's covered for most wage... Read more →


If you're out of work, thank you for taking a break from LinkedIn and job hunting sites to stop by the ol' tax blog. I wish you the best in your job search. But I also must provide some unwelcome news. As this week's Weekly Tax Tip notes, even if you're unemployed, you still could face some tax issues. Paying tax on unemployment: First, the biggie. Unemployment benefits are taxable income. Wait, you say. You heard some unemployment is tax-free. That was the case years ago; in 2009, up to $2,400 in unemployment benefits were not taxed. But that tax... Read more →


June 15 is a big tax day. It's normally the due date for the year's second estimated tax payment. It's also the filing deadline for taxpayers abroad, be they private citizens or members of the U.S. military. But when June 15 falls on a weekend, like today, then the deadline is pushed to the next business day. That means these tax tasks must be taken care of no later than Monday, June 17. I blogged last week about estimated taxes, so today's post focuses on the tax responsibilities of taxpayers living outside U.S. borders. Two more months to file: The... Read more →


UPDATED June 13, 2017: The table showing where to snail mail your estimated tax payment voucher has been updated. Some links also have been changed. Has your summer gotten off to a good start? Great! But if you must make estimated tax payments, you need to take a break from your fun in the sun and send in your second Form 1040-ES for tax year 2013. It's usually due on June 15. But since that's a Saturday this year, you get a couple more days to make the payment. Your second estimated tax payment for 2013 is due Monday, June... Read more →


I know it's late on Friday. But it's also the Friday before April 15. Not to ruin your weekend, but you might need to do some extra tax work this Saturday and Sunday. The reason? April 15 isn't just for filing your annual federal tax return or, if you're a bit jammed up, sending the Internal Revenue Service File Form 4868 to get an automatic six-month extension to file. April 15, or the next business day when it falls on a weekend or federal holiday, also is the deadline for five other tax tasks. I know I mentioned them in... Read more →


When you're an independent contractor, you sometimes appreciate the adage that "it's better to be lucky than good." While I believe that being good is what will keep your business in business for the long haul, luck in getting a job or two is always welcome. But you shouldn't rely on luck when it comes to paying taxes on your independent contracting income. So today's Daily Tax Tip on this St. Patrick's Day combines an Irish symbol of luck, the four-leaf clover, and with some tax advice -- OK, four tax tidbits in keeping with the number of the auspicious... Read more →


Next week is a big one for taxpayers. The 2013 federal tax filing season begins, finally, on Jan. 30. And the very next day is a deadline for several tax situations. Jan. 31 is the day that employers are required to send out the prior year's W-2 forms. If you employed household help last year, this deadline also applies to you. Yes, the so-called nanny tax applies to regular folks, too, not just political appointees. Find out more in January Daily Tax Tip #17. The last day of this month also is the mailing deadline for all those wonderful 1099s.... Read more →


Did you get so caught up in the fiscal cliff fight and the subsequent tax rate changes for 2013 that you almost forgot that our first tax deadline of the new year is almost here? Me, too. But tax time marched on and tomorrow, Jan. 15, is the due date for the final estimated tax payment of 2012. Dealing with estimated taxes also is today's Daily Tax Tip. The good news is that when it comes to 1040-ES forms and payments, either by check or money order payable to the U.S. Treasury, the Internal Revenue Service uses the same "timely... Read more →


Do you own stock or mutual funds that pay dividends? It doesn't matter whether you're getting the earnings as cash or having the money reinvested in your holdings (the hubby and I are big dividend reinvestment program, or DRIP, fans), you're going to owe taxes on that unearned income. The only consolation is that for the most part it's taxed as long-term capital gains. And as we've all been reminded repeatedly during the fiscal cliff debates, that tax rate -- 15 percent for folks in the current top four income tax brackets; no tax at all for those in the... Read more →


A quick nag reminder about today's estimated tax payment deadline. Your third 1040-ES of 2012 is due by midnight if you pay electronically. In this case you don't have to actually send in the Internal Revenue Service voucher, just the amount you owe via your credit or debit card or bank account transfer. Click for a larger view. Or if you're mailing your payment via paper check or money order, you have until your post office closes. Estimated tax payments, just like your annual 1040 filing, are considered filed on time as long as the envelope is postmarked by the... Read more →


The taxes taken out -- or not -- of your pay was the topic touched on last week at my other tax blog. Let's start with Social Security and Medicare taxes, often shown as FICA on pay stubs, that usually are collected on severance pay. If you've ever received a payout package after being laid off, you know how important every penny of that final check is. A recent federal court ruling could help you get a bigger last paycheck if you're ever in that position. The 6th U.S. Circuit Court of Appeals agreed with a Michigan retailer and some... Read more →


Hurricane Isaac wasn't the biggest, baddest storm to strike the United States, but he still did a heck of a lot of damage. Louisiana officials say it will cost $7.4 million to repair storm damage to state parks. Isaac help send jobless numbers higher and industrial production down as businesses in his path took big hits. Even college football games and the accompanying tourism money from traveling fans was lost as several gridiron contests were rescheduled because of Isaac's rain and winds. And let's not forget the Tampa area, which sustained some economic losses when the Republican National Convention was... Read more →


Here's a question for my fellow estimated tax payers: Have you sent in your third 1040-ES voucher yet? If not, don't panic. You've got a couple of extra days. Sept. 15 is on Saturday, so your estimated tax payment isn't due until Monday, Sept. 17. I've spent my share of weekends over the years taking care of tax tasks. Not so this year. As you can see by my redacted receipt below from the Electronic Federal Tax Payment System (EFTPS), I've scheduled our payment. Click for a larger view. If, however, you've yet to file your 1040-ES, you might have... Read more →


Careful readers of the ol' blog already have noticed that I finally got out of my long Labor Day holiday stupor and turned the digital page on the monthly tax calendar. So we're into September. Summer's over. Schools underway. Cooler temperatures will be here soon, we hope! And there are tax moves to be made. Pennsylvanians got an early taste of taxes when on the first day of this month the state's new online sales tax collection kicked in. Californians also will see their online and catalog sales slips include the state and local taxes starting on Sept. 15. The... Read more →


If your week has been as crazy as mine, then tomorrow's impending tax filing deadline might have sneaked up on you. Don't freak out. You only have to worry about June 15 if you're making estimated tax payments. This extra filing duty, which is this week's Weekly Tax Tip, is required of folks who get income on which there is no withholding, such as self-employment earnings, investment income or even gambling proceeds. In those cases, the filing of Form 1040-ES four times a year is the Internal Revenue Service's answer to the regular pay-as-you-earn system that's generally covered by payroll... Read more →