How Do I File a Quarterly Estimated Income Tax Return?
Estimated taxes are paid quarterly on untaxed income. Common examples of such income include self employment profits, earnings from rental property and significant interest and dividend payments. Quarterly estimated taxes are required if the tax owed is expected to be $1,000 or more and the amount of taxes withheld for the year is less than 90 percent of the previous year’s tax or 100 percent of the tax from two years previously. Special rules apply for fishers, farmers, some household employers and high-income households.Tax ComputationInformation from the prior year’s tax return is used to compute the estimated taxes due for the current year. This information is included with current year earnings on the Estimated Tax Worksheet found in the packet Form 1040-ES. These packets are available by mail from the IRS or online at www.irs.gov. The Estimated Tax Worksheet provides the amount of estimated taxes due each quarter.Payment By MailPayment vouchers for each quarterly payment are incl
