Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Concluding the Interview

Avoiding a Balance Due Next Year

Estimated Tax Payments

Timing of Payments

Taxpayers must estimate the amount of tax they expect to owe for the tax year, after deducting any tax credits or federal withholding. Taxpayers with significant income that is not subject to withholding, such as interest, dividends, capital gains or self-employment income, often find they need to make estimated tax payments.

The decision tree in Publication 17, Your Federal Income Tax for Individuals, and Publication 505, Tax Withholding and Estimated Taxes, can help determine if the taxpayer should make estimated tax payments. Review the Payments lesson for more information.