Here are six tips you should know about estimated taxes:
1. You should pay estimated taxes in 2014 if you expect to owe $1,000 or more when you file your federal tax return. Special rules apply to farmers and fishermen.
2. Estimate the amount of income you expect to receive for the year to determine the amount of taxes you may owe. Make sure that you take into account any tax deductions and credits that you may be eligible to claim.
3. You normally make estimated tax payments four times a year. The dates that apply to most people are April 15, June 16 and Sept. 15 in 2014, with the fourth payment due by Jan. 15, 2015.
4. You may pay online or by phone. You may also pay by check or money order, or by credit or debit card. If you mail your payments to the IRS, use the payment vouchers that come with Form 1040-ES – “Estimated Tax for Individuals.” Go to IRS.gov to access the form.
5. Also, check out the electronic payment options on IRS.gov. The EFTPS – “Electronic Filing Tax Payment System is a free and easy way to make your payments online electronically.
6. Read the instructions for Form 1040-ES to help figure your estimated taxes. If you’ve already missed making the first quarter (April 15) and second quarter (June 16) estimated payments, you can still make the third and fourth quarter payments.
Remember that life changes may happen during the year; such as a change in marital status or the birth of a child, which can affect your taxes. So, you may have to adjust the amount of your estimated payments accordingly.