{"id":60,"date":"2015-06-15T15:25:16","date_gmt":"2015-06-15T15:25:16","guid":{"rendered":"http:\/\/cpamorey.com\/blog\/?p=60"},"modified":"2015-06-15T15:25:16","modified_gmt":"2015-06-15T15:25:16","slug":"estimated-taxes-what-orange-county-residents-need-to-know","status":"publish","type":"post","link":"https:\/\/cpamorey.com\/blog\/estimated-taxes-what-orange-county-residents-need-to-know\/","title":{"rendered":"Estimated Taxes – What Orange County Residents Need to Know"},"content":{"rendered":"

Estimated taxes are not just for the self-employed. They\u2019re owed by anyone who has at least some income that isn\u2019t subject to withholding by an employer. For example, if you receive interest or dividends, rent, or income from selling an asset, you are required to pay estimated taxes.<\/p>\n

\"Estimated<\/a>If you\u2019re not deducting enough income tax deducted from your salary, pension, or other income, you\u2019re obligated to send the IRS a payment four times a year. This is why it\u2019s so important that you enter the correct number of allowances on your W-4 (and even add an additional amount if necessary), and that you track all income. Failure to submit enough income tax dollars prior to filing your 1040 \u2013 and by the IRS\u2019 scheduled deadlines — will result in penalties, even if the IRS owes you a refund.<\/p>\n

How to Pay<\/strong><\/p>\n

The form you use to submit your estimated tax payments depends on what type of business entity you are. If you are a sole proprietor, partner, S corporation shareholder, and\/or a self-employed individual, you\u2019ll need to make quarterly estimated payments if you think you will owe $1,000 or more (after you subtract withholding and refundable credits) or more come filing time. You would use the Form 1040-ES<\/a> (Estimated Tax for Individuals) to calculate and pay. Corporations should use the Form 1120-W<\/a> (Estimated Tax for Corporations) if they expect to owe $500 or more when they file.<\/p>\n

You\u2019re not required to pay estimated taxes if:<\/p>\n