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Today 9:41 AM
You: What’s an “estimated tax payment”? Explain it simply.
SMS Buddy: Happy to! An estimated tax payment is money you send the IRS during the year, instead of paying it all at once in April. Who needs it: people whose pension, Social Security, rental income or side job doesn’t have tax taken out automatically. When it’s due: four times a year, usually April 15, June 15, September 15 and January 15. How much: a simple starting point is last year’s total tax divided by four. Your tax preparer can confirm the right amount for you. How to pay: online at IRS.gov/payments, or by mailing a check with Form 1040-ES.
You: Show me the steps
SMS Buddy: Of course. Step 1: find last year’s tax return and look for “total tax.” I’ll walk you through the rest, one step at a time.
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