Form 1040-ES (NR) 2020

Instructions and Help about Form 1040-ES (NR)

Individual income tax return issues estimated tax deposit for 2017 you got four deposits that are due during the year the first one was due on April 15th the second one is due on June 15th and that date is coming up so if you've already had your return prepared you probably know you might know how much of an estimate you need to make if you do need to make an estimate that is the system they apply to people who have w-2 jobs you know where you have income tax withholding itself usually doesn't apply so much to those folks but if you think you're going to owe more than $1,000 at the end of the year you probably have to make estimates there's really more applies to self-employed individuals who have to come up and pay that money themselves they don't have their employer withholding and Romanian taxes to the government on their behalf so June 15th is the important date that's the day you got to make your next taxes taxes do you have to pay estimates at all if you're self-employed your problem we do may be if you have a lot of investment income or if you just think you're going to owe taxes specifically if you're going to owe $1,000 or more at the end of 2017 in order to avoid a penalty is supposed to make estimated tax deposits throughout the year ratably throughout the year the goal is that by the due date of the 2017 tax return in April of 2018 that is you have either paid ninety percent of the current year's tax or 100 percent of the prior year's tax whichever number is smaller how much is due in June at June 15th 1/4 of that 25% of that estimated liability is going to make that second estimated deposit but 90 percent 100% rule we talk about that 90 percent of the current year's tax 2017 tax or a hundred percent of the 2016 tax by the due days of 2017 return if you want to avoid a penalty but there is another rule 110 percent rule get rid of this 100 and make it a hundred and ten percent if you're just a gross income in 2016 is over all in 30 thousand dollars what does that mean that means if you made more money then 150 thousand instead of saying I need a hundred percent of 2016 tax you actually need one hundred percentage of 2016 tax which means you gotta up your estimates by that much in order to avoid a potential penalty and be paid up and be good with the IRS and all that stuff so yeah 10% rule that mean for you in real terms well if you're already happy 2016 tax return prepared and you software you use the preparer you probably already know if you are required to make estimated deposits and you probably already know what those numbers