Some taxpayers may need to make estimated tax payments during the year. The type of income you receive determines whether you must pay estimated taxes. Here are 4 quick tips about making estimated tax payments.
1. If you do not have enough taxes withheld from your income, you may need to make estimated tax payments. This typically applies if you have income from self-employment (business), interest, dividends or capital gains. If you are required to pay estimated taxes during the year, you should make these payments quarterly to avoid penalty and interest.
2. Generally, you need to pay estimated taxes if you expect to owe $1,000 or more in taxes.
3. You normally make estimated tax payments four times a year. The dates that apply to most people are April 17, June 15 and Sept. 17 in 2018, and Jan. 15, 2019.
4. You should use Form 1040-ES or one-fourth of the year-end tax liability, to calculate your estimated tax payments. You may pay online, by phone, check, money order, credit card or debit card.
When figuring the amount of your estimated taxes, you should estimate the amount of income you expect to receive for the year. You should also include any tax deductions and credits that you will be eligible to claim. Be aware that life changes, such as a change in marital status or a child born during the year can affect your taxes.
NJ Online link for making estimated tax payments: