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

I can’t pay estimated taxes by the estimated taxes deadline of Jan. 15. Is it possible to postpone or extend the deadlin

Not sure if you can pay your estimated taxes by the deadline? Learn about your options today. Get tax answers from H&R Block.

Where can I find my tax extension confirmation number?

Learn how to find your tax extension conformation number with help from the tax experts at H&R Block.

I need to know how to request extension and file an S-corporation extension — Do I need to file Form 7004?

Do you need to file for an S-corporation extension? Learn more from the tax experts at H&R Block.

I need to request extension for my tax liability. When I file extension using Form 4868, do I have to pay my entire tax

Estimate your balance due for filing a tax extension with help from the tax experts at H&R Block.