Do you need to make estimated tax payments?

Author: C.A.C Financial Services | | Categories: Credit Restoration Assistance , Identity Protection Assistance , IRS Tax Help , Payroll Services , Personal Budgeting Assistance , Small Business Accounting , Small Business Bookkeeping , Tax Debt Resolution Services

Blog by C.A.C Financial Services

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:
  • 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