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 Resources
IRS Notice CP01H – Identity Theft Lock
Your return cannot be processed by the IRS. Learn more about IRS Notice CP01H and how to address it with help from the tax experts at H&R Block.
IRS Letter 728 – Current Balance Due
Your IRS balance due has been assigned to a Revenue Officer. Learn more about IRS letter 728 and how to handle it with help from the experts at H&R Block.
Getting Your IRS Tax Refund Status
Find out how to check your IRS refund status and what you need to get your tax return. H&R Block is here to help you get your tax refund.
How to Handle IRS CP2000 Notices (Underreporter Inquiry)
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