From Carol McAtee’s CPA firm in St. Petersburg, FL –Usually, income derived from self-employment, interest, dividends, alimony, rental property, and from gains on the sale of assets is not subject to withholding, and taxpayers receiving these types of income may be required to make estimated tax payments.
As a general rule, estimated tax payments must be made if both the following apply: 1) a taxpayer expects to owe at least $1,000 in tax after subtracting any tax withholding and credits, and 2) the taxpayer expects their withholding and credits to be the less than the smaller of 90 percent of your 2011 taxes or 100 percent of the tax on your 2010 return. Special rules apply to farmers, fisherman, household employers, and higher income taxpayers.
Estimated taxes are paid quarterly, on April 15, June 15, September 15, and January 15. Payments are sent in with Form 1040ES, Estimated Tax for Individuals. Call the tax professionals at McAtee & Associates, if you need help calculating estimated taxes or making payments. Contact us for assistance in all of your financial and tax matters.
ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.