Making Estimated Payments (or not!)

If you have income that is not subject to income tax withholding, you might need to make quarterly estimated tax payments to avoid (a) a large balance due when you file your return, and (b) penalties for not "paying as you go." This video describes the process for making estimated payments, and how many taxpayers can avoid making them.

0:00 Introduction
0:40 Estimated payments - Why and When
1:37 Making the payments
2:08 Calculating the estimates
3:40 Alternatives to making estimated payments
5:45 Reporting Est. payments on the tax return
6:02 State considerations
6:19 Conclusion

For more information on calculating taxes of business income, click here:    • Are you self-employed? (and don't kno...  

To learn more about the Qualified Business Income Deduction, click here:    • Qualified Business Income Deduction (...  

Additional information on filling out Form W-4 and be found here:    • How to fill out a W4 (Revised and Upd...  
and here:    • How "Checkbox Withholding" can transf...  

Additional Information and Resources:

IRS Form 1040-ES "Estimated Tax Payments" (Includes instructions): https://www.irs.gov/pub/irs-pdf/f1040...

IRS Form W-4 "Employee Withholding Certificate": https://www.irs.gov/pub/irs-pdf/fw2.pdf

Nerdwallet.com: "Estimated Tax Payments 2023: How They Work, When to Pay": https://www.nerdwallet.com/article/ta...

The Tax Geek on Twitter (x): www.twitter.com@taxgeekusa

The Tax Geek on Reddit: www.reddit.com/r/askataxgeek

Image/Video Sources:

Storyblocks.com
Trove.com

The images of "Walter" and "Fred" were generated by thispersondoesnotexist.com (stability.ai) and any resemblance between these images and any person, living or dead, is coincidental and not intended. No other artificial intelligence was used to research, write, animate, voice, or edit this video

Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Creator Music

Outro Music: "Modern Attempt" - Track Tribe under license from YouTube Creator Music

DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.

The information in this video is current as of date of publication, and is subject to changes.