Who is required to make quarterly estimated tax payments?
Anyone that does not have more than 90% of their taxes withheld by payroll deductions by December 31, and has an outstanding liability of more than $1,000 is required to pay their estimated tax liability through quarterly estimated tax payments. The people most often affected by this situation include: self-employed individuals; retired people; partners of a partnership; members of a limited liability company or partnership; or people that have a significant amount of income from other sources such as interest, dividends and capital gains. How is the amount of my quarterly estimated tax payments determined? Generally, of 90% of your annual income must be paid on each of the following dates: April 15, June 15, September 15, and January 15 of the following year. However, if your income is not received evenly throughout the year, the IRS allows each quarterly estimated tax payment to be calculated based on the income received in that quarter only. How can I determine the amount of my quar
