Estimated taxes Feed

NOTE: This post was updated Wednesday, Nov. 1, 2017 Each year, the Internal Revenue Service assesses estimated tax penalties against millions of taxpayers. This added money typically is due the IRS when a taxpayer pays too little total tax during the year. The penalty is calculated based on the interest rate charged by the IRS on unpaid tax. In 2015, the average estimated tax penalty was about $130. The IRS says it's seeing more taxpayers run into the estimated tax penalty. The number jumped about 40 percent from 7.2 million in 2010 to 10 million in 2015. Even when individuals... Read more →

Looking for something to do this weekend? The Internal Revenue Service has some suggestions. If you pay estimated taxes or are a civilian or military taxpayer living outside the United States, you should spend the coming Saturday and Sunday working on your taxes since they're due Monday, June 15. Yeah, I know. It's not really the start of summer celebration you were hoping for. But it's one that must be heeded or you'll find yourself owing Uncle Sam more. Here's the calendar scoop. Estimated taxes If you get income that's not subject to payroll withholding, you need to make these... Read more →

Weather claims, estimated taxes and more June tax tasks

Texas is finally drying out. For millions of Texans, the extraordinarily wet May was welcome. Rivers are running again and many Lone Star State lakes are finally full(er) after years of drought. After the Trinity River came out of its banks, the herd in the video above was safely moved to higher, drier land thanks in part to an impromptu cattle drive through the small town of Dayton, Texas. But in other cases, there was no escape from raging water. Several areas in Texas, Oklahoma and other Plains States suffered the deadly side of Mother Nature. Tax help for disaster... Read more →

I once worked for a company that was waaaaaay into scheduling. I mean years and years ahead scheduling. It always cracked me up when I was asked to put such long-term appointments in my datebook. Sure, I'll mark my calendar and be around then…maybe. Dates, however, are crucial to taxes. Miss one and, if you owe Uncle Sam, you'll owe him even more. Tax Day 2016 is April 18: So it's no surprise that the Internal Revenue Service is already announcing a tweak in connection with the 2016 tax filing deadline. At issue is a confluence of tax deadlines and... Read more →

April 15 is for more than just filing last year's taxes. There are six other individual tax-related tasks that are due today. Ready. Set. Go. 1. Open and/or contribute to an IRA The April filing deadline is the last chance you get to make a contribution to your traditional or Roth IRA and have it count as if you put the money in by last Dec. 31. For some filers, that prior year traditional IRA contribution could count as an above-the-line deduction on Form 1040 or 1040A. And that could help lower their tax bills. 2. Pay your estimated taxes... Read more →

I had a great time today talking with all the wonderful folks at Freelance Austin about taxes. The timing was perfect, too. Not only is January the start of the annual filing season for the prior year's tax returns, it's also time to start thinking about moves to make this year to keep your coming tax bill low. And tomorrow, Jan. 15, is the due date for the final estimated tax payment of 2014. Today's Daily Tax Tip has the skinny on filing estimated taxes. Click voucher image for full Form 1040-ES package as PDF from the IRS. Ways to... Read more →

There are just two days left in the 2014 tax year. That's not much time, but folks determined to save on this year's taxes still have time to make a few year-end moves. I was up at o'dark-thirty this morning to discuss some quick year-end tax tactics with KARN radio. If you weren't up at 6:10 a.m. (and why in heaven's name would you be!?) or aren't in the Little Rock, Arkansas, broadcast area, here's what I talked about (and more). Do you itemize? If so, you have more tax-cutting options than those who claim the standard deduction. Here are... Read more →

It's deadline day for payers of estimated tax. The third installment of these four extra tax filings/payments each each year is due today, Sept. 15. This third 1040-ES payment covers money you got but didn't pay withholding taxes on between June 1 and Aug. 31. Those three months and today's third estimated tax deadline earn 3 the latest By the Numbers honor. But there are other figures that come into account as you figure your estimated tax payments. Amounts used to figure estimated tax: The biggie is your expected adjusted gross income, or AGI, for the year. This includes any... Read more →

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 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 →

This post was updated Friday, June 1, 2108 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. Even when you're unemployed, you're likely to still 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. Sorry. That info is not quite an urban legend; it's just outdated. A few years ago, as the... 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 →