Accounting & Tax Resolution

Five Tax Tips on Estimated Tax Payments for your 2016 Tax Season

You usually will have taxes withheld from your pay if you are an employee. However, if you don’t have taxes withheld, or you don’t have enough tax withheld, you may need to make estimated tax payments. If you are self-employed you normally have to pay your taxes this way. Here are five tips about making estimated tax payments:
1. When the tax applies. You should pay estimated taxes in 2015 if you expect to owe at least $1,000 in tax for 2016.
2. How to figure the tax. Estimate the amount of income you expect to receive for the year. Contact Gina to get your exact estimated tax payment amounts and vouchers to mail.

3. When to make payments. You normally make estimated tax payments four times a year. The dates are April 18, June 15 and Sept. 15. There is one last payment on Jan. 17, 2017.
4. When to change tax payments or withholding. Major life changes like the birth of a child can affect your taxes. When these changes happen, you may need to revise your estimated tax payments during the year. If you are an employee, you may need to change the amount of tax withheld from your pay. If this is the case, give your employer a new Form W–4, Employee’s Withholding Allowance Certificate.
5. How to pay estimated tax. You can pay online, by phone or from your mobile device or voucher by mail.
Contact Gina Mewes (386)747-9097 to help you stay on track with estimated payments for 2016.