As a result of the COVID-19 pandemic and a gig economy, there is now a larger population of workers that do not qualify for tax withholding. Many of these individuals are likely going to make estimated tax payments for the first time this year.
Self-employed individuals, small business owners, and wage earners that do not qualify for tax withholding should consider making estimated tax payments to avoid having to pay in and face a possible penalty when filing next year. The next deadline for the estimated tax payment is September 15, 2021 and the final deadline is January 15, 2022.
Individuals who expect to owe $1,000 or more when filing their tax return should make estimated tax payments. To calculate your estimated tax payments, use Form 1040-ES.
Contact one of our tax experts with questions about making estimated tax payments.
More resources:
ATA Tax Resources
IRS Estimated Tax Payment Information