Question

I need to estimate tax liability because I know I have a balance due and owe taxes. How do I estimate extension tax liability?

Answer

To estimate your taxes due/balance owed, you can do either of these:

  • Use the estimated tax worksheet in the instructions for Form 1040-ES. Use Line 13c as your estimated taxes due/balance owed on your extension as filed on Form 4868.
  • Complete your return with the actual figures you have and estimate figures for those that you don’t. Use the amount of tax due on the return as your estimated taxes due/balance owed. Make sure you replace all of your estimates with actual figures before filing your return.

When you eventually file your return:

  • You’ll receive a refund for any tax you overpaid.
  • If you underpaid and owe tax, the remaining balance owed amount will be subject to interest and penalties.

Related Topics

Related Resources

IRS Notice CP05B – The IRS Needs More Information to Determine if You’re Due A Refund

Learn more about notice CP05B, why you received it, and how to handle an IRS CP05B notice with help from the tax experts at H&R Block.

Changes To Your IRS Refund Amount

Did you see a change in your refund amount? Learn why the IRS makes changes to your tax refund based on credits and deductions from the tax experts at

Underreported Business Income

Learn about underreported business income. Read the IRS definition and get more insight from the tax experts at H&R Block.

Why Did I Receive a 1099 Form and Not an Employee W-2?

Did you receive a 1099 form instead of an employee W-2? Let us help you understand the difference between these forms.