Some taxpayers earn income not subject to withholding. For small business owners and self-employed people this can mean making quarterly estimated tax payments. Anyone in this situation should 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. Here are some important things taxpayers should know about estimated tax payments: • Taxpayers generally must make estimated tax payments if they expect to owe $1,000 or more when they file their 2020 tax return. • Aside from business owners and self-employed individuals, people who might also need to make estimated payments include sole proprietors, partners and S corporation shareholders. It also often includes people involved in the sharing economy. • Estimated tax requirements are different for farmers and fishermen. • Corporations generally must make these payments if they expect to owe $500 or more on their 2019 tax return. The remaining deadlines for paying 2020 estimated taxes are September 15, 2020 and January 15, 2021. • Taxpayers can review these forms for help figuring their estimated payments: o Form 1040-ES, Estimated Tax for Individuals o Form 1120-W, Estimated Tax for Corporation • Taxpayers have options for paying estimated taxes. These include: o Direct Pay from a bank account. o Paying by credit or debit card or the Electronic Federal Tax Payment System. o Mailing a check or money order to the IRS. o Paying cash at a retail partner. Taxpayers who don’t pay enough tax throughout the year may have to pay an underpayment penalty. Share this tip on social media