Quarterly Estimated Tax Payments

Here are some key things to help taxpayers determine if they need to make estimated tax payments:

  • Generally, taxpayers need to make estimated tax payments if they expect to owe $1,000 or more when they file their 2022 tax return, after adjusting for any withholding.

  • The IRS urges anyone in this situation to check their withholding using the Tax Withholding Estimator on IRS.gov. If the estimator suggests a change, the taxpayer can submit a new Form W-4 to their employer.

  • Aside from business owners and self-employed individuals, people who need to make estimated payments also include sole proprietors, partners and S corporation shareholders. It also often includes people involved in the sharing economy.

  • Corporations generally must make these payments if they expect to owe $500 or more on their 2022 tax return.

  • Aside from income tax, taxpayers can pay other taxes through estimated tax payments. This includes self-employment tax and the alternative minimum tax.

  • The remaining deadlines for paying 2022 quarterly estimated tax are: June 15, Sept. 15, and Jan. 17, 2023.

  • Taxpayers can check out these forms for details on how to figure their payments:

  • Form 1040-ES, Estimated Tax for Individuals

  • Form 1120-W, Estimated Tax for Corporations

  • Taxpayers can visit IRS.gov to find options for paying estimated taxes. These include:

  • Direct Pay from a bank account.

  • Paying by credit or debit card or the Electronic Federal Tax Payment System.

  • Mailing a check or money order to the IRS.

  • Paying cash at a retail partner.

  • Anyone who pays too little tax through withholding, estimated tax payments, or a combination of the two may owe a penalty. In some cases, the penalty may apply if their estimated tax payments are late. The penalty may apply even if the taxpayer is due a refund.

More information: About From 1040 Form 1120 Instructions Publication 505, Tax Withholding and Estimated Tax