Tips on Making Estimated Tax Payments

Tips on Making Estimated Tax Payments

If you don’t have taxes withheld from your pay, or you don’t have enough tax withheld and you owed money with your 1040, then you may need to make estimated tax payments. If you’re self-employed you normally have to pay your taxes this way. Likewise, retirees with the majority of income represented by dividends and interest have to make estimated payments.

Review Withholding/Estimates to Avoid Tax-Day Surprise

Some people are surprised to learn they’re due a large federal income tax refund when they file their taxes. Others are surprised that they owe more taxes than they expected. When this happens, it’s a good idea to check your federal tax withholding or estimated payments. Doing so now can help avoid a tax surprise when you file your 2013 tax return next year.

Here are some tips to help you bring the tax you pay during the year closer to what you’ll actually owe.