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Freetaxusa 2009Freetaxusa 2009 6. Freetaxusa 2009 Estimated Tax Table of Contents Who Must Make Estimated Tax Payments Estimated tax is a method used to pay tax on income that is not subject to withholding. Freetaxusa 2009 This income includes self-employment income, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Freetaxusa 2009 Income tax generally is withheld from pensions and annuity payments you receive. Freetaxusa 2009 However, if the tax withheld from your pension (or other) income is not enough, you may have to pay estimated tax. Freetaxusa 2009 If you do not pay enough tax through withholding, by making estimated tax payments, or both, you may be charged a penalty. Freetaxusa 2009 Who Must Make Estimated Tax Payments If you had a tax liability for 2013, you may have to pay estimated tax for 2014. Freetaxusa 2009 In most cases, you must pay estimated tax for 2014 if both of the following apply. Freetaxusa 2009 You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Freetaxusa 2009 You expect your withholding and refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. Freetaxusa 2009 The 2013 tax return must cover all 12 months. Freetaxusa 2009 If all of your income will be subject to income tax withholding, you probably do not need to make estimated tax payments. Freetaxusa 2009 For more information on estimated tax, see Publication 505. Freetaxusa 2009 Prev Up Next Home More Online Publications
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