Estimated Payments Made During The Year

Advance payments of present tax liability dependent on wage withholdings or installment payments oa the estimated tax liability of the taxpayer are referred to as Estimated Tax Payments. With regard to their adjusted gross income, taxpayers must pay either 90% of their final tax liability, or 100% or 110% of their tax liability of the previous year inorder to avoid penalties. Estimated payments ought to be made from earnings from self employment, dividends, interest, alimony, rental income, gains from the sale of assets, as well as prizes and awards. In the event that the withholding of the taxpayer doesn’t cover the entire tax due at the end of the year, Estimated payments may be made. 

Estimated taxes are paid by self-employed persons, S Corporation shareholders, sole proprietors or partners who expect to owe taxes in excess of $1,000 when they file their tax return. Estimated tax payments for the current year need to be made by the taxpayers who had a tax liability in the previous year. 

To enter estimated payments in the Taxx Savage Pro: 

• Go to the Main Menu of the tax return (Form 1040) 
• From the menu, select Payments, Estimates, & EIC 
• Proceed to Estimated Payments Made for 20xx - Enter any payments made by the taxpayer from their previous year tax return, and the quarterly payments made to the IRS directly. All the amounts entered in this menu show on the estimated taxes paid line of Form 1040. 

This is not tax advice. It is a guide on how to enter Estimated Payments made into the Taxx Savage Pro Program. 

Additional Information:

Instructions for Form 1040-ES, Estimated Tax for Individuals