Estimated Tax Payments / Amount Applied from Prior Year Return / Extension Payment
Estimated tax payments are required for individuals who expect to owe at least $1,000 in tax after subtracting withholding and credits, and whose withholding and credits are expected to be less than 90% of the current year’s tax liability or 100% of the prior year’s tax (110% if your prior year AGI was over $150,000). These payments are typically made quarterly using Form 1040-ES.
Estimated Tax Payments
- Payments are due on April 15, June 15, September 15, and January 15 of the following year.
- Use Form 1040-ES to calculate and pay estimated taxes.
- Payments can be made via electronic funds transfer, credit card, or check.
Amount Applied from Prior Year Return
- If you had overpayments on your prior year return, the IRS may apply those refunds to your current year’s tax liability.
- Check your prior year Form 1040 to see if any amount was applied as a credit for the current year.
- Any overpayment applied will reduce your balance due for the current tax year.
Extension Payment
- An extension to file (Form 4868) gives you additional time to file your return, but not to pay any taxes owed.
- You must still pay any estimated tax due by the original deadline (April 15) to avoid penalties and interest.
- Use OLT’s software to file an extension: Click on the tax tools button in the top-right corner, select “extension,” and follow on-screen instructions.
Source:
About Form 1040-ES
About Form 4868
Publication 509
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.