(The information in this article focuses on the 2019 fiscal year. While the IRS provides the following information, you should always consult with your trusted financial advisors before making any decision related to business or personal taxes).
Everyone must pay taxes on the income they earn. Taxpayers who win a paycheck usually have their employer withhold their federal income tax from their paychecks. However, there are taxpayers whose income is not subject to withholding, for example, certain small business owners or self-employed persons.
For these people, that means making tax payments estimated quarterly. As quarterly taxpayers can tell you from experience, it can be confusing to estimate such payments. This article contains advice for quarterly taxpayers, including information on a new IRS withholding tax estimator .
IRS tips and suggestions regarding tax payments estimated quarterly.
- Taxpayers generally must make estimated tax payments if they expect to owe $ 1,000 or more when they file their 2019 tax return.
- If they wait for the next year payment or not, taxpayers may have to pay the estimated tax for 2019 if your tax was more than zero in 2018.
- Employees who also have business income can often avoid paying the estimated tax. They can do this by asking their employer to withhold more taxes from their paychecks.
- In addition to business owners and freelancers, people who need to make estimated payments also include sole proprietors, partners and shareholders of S corporations. It also often includes people involved in the shared economy.
- The estimated tax requirements are different for farmers and fishermen.
- Corporations generally must make these payments if they expect to owe $ 500 or more on their 2019 tax return.
- In addition to income tax, taxpayers can pay other taxes through estimated tax payments. This includes the self-employment tax and the alternative minimum tax.
- The last two installments to pay estimated 2019 payments are Sept. 16, 2019 and Jan. 15, 2020 .
More help from FDMania | What the IRS wants you to know about car expenses, deductions and taxes, 2019.
The IRS withholding tax estimator
Taxpayers I have not yet verified their withholding this year (2019) I should do it as soon as possible. All taxpayers can do this using the new Tax Withholding Estimator for mobile devices.
According to the IRS, it is an easy-to-use, step-by-step tool to help taxpayers effectively adjust the amount of income tax they have withheld from wages and pension payments.
- The use of the paycheck can help taxpayers avoid an unexpected end of the year tax bill and possibly a fine when they file their 2019 tax return next year.
- The tool allows taxpayers to enter pensions and other sources of income separately. Taxpayers who receive pension income can use the estimator results to complete a Form W-4P. Then they give that form to their payer.
- The tool facilitates the entry of wages and withholdings for each job that the taxpayer and his spouse have.
- At the end of the process, the Tool makes specific retention recommendations for each job and spouse. It also clearly explains what the taxpayer must do next.
Here are some things the IRS wants you to know about the Withholding Tax Estimator.
More IRS forms, guides and instructions
- Pay as you go withholding tax information n
- Form 1040 Instructions  Form 1120 Instructions
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