Do you need to make estimated tax payments?

Here are some important things taxpayers should know about estimated tax payments:

If you earn income that’s not subject to withholding and you expect to owe $1,000 or more when filing your 2020 tax return then you must make estimated tax payments.
Business owners, self-employed individuals, and people involved in the sharing economy might also need to make estimated payments.
Corporations must make estimated payments if they expect to owe $500 or more on their 2020 tax return.
The remaining deadlines for paying 2020 estimated taxes are September 15, 2020, and January 15, 2021.
Taxpayers can review these forms for help figuring their estimated payments:
- Form 1040-ES, Estimated Tax for Individuals
- Form 1120-W, Estimated Tax for Corporations
Taxpayers have options for paying estimated taxes. These include:
- Direct Pay from a bank account.
- Paying by credit or debit card or the EFTPS
- Mailing a check or money order to the IRS.
- Paying cash at a retail partner.
Taxpayers who don’t pay enough tax throughout the year may have to pay an underpayment penalty.
Taxpayers, who have a job or a pension with federal tax withholding should check their withholding using the Tax Withholding Estimator on IRS.gov.