Browse Tax Articles
H&R Block Tax Professionals relentlessly focus on making sure you profit from every deduction and credit available.
Finding answers to your tax questions is now less taxing.
Income tax is a pay-as-you-go system. If you're an employee, you pay as you go through withholding. But if you’re self-employed, you must make quarterly estimated tax payments toward the amount you expect to owe the IRS. These payments should include both your income and self-employment taxes.
If you have other income that includes W-2 wages, you might be able to withhold enough to cover self-employment taxes. That way, you might not need to make estimated payments. However, in some cases, you might still need to make estimated payments. Ex: You receive a substantial amount of taxable income not subject to withholding.
You might make estimated payments for income that’s not tax-free and comes from:
Estimated tax payments for 2016 are due:
You can make estimated tax payments using any of these methods:
To learn more, see Form 1040-ES instructions at www.irs.gov.
You must make estimated tax payments and file Form 1040-ES if both of these apply:
Special rules exist for higher-income taxpayers. Your 2015 adjusted gross income (AGI) might be more than:
If it is, you must prepay 110% instead of 100% of the 2015 tax. You’ll need to do this to avoid a possible underpayment penalty for 2016.
To learn more about the estimated tax penalty, see the Underpayment of Estimated Tax tax tip.