Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, and rent, as well as gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return. How do I know if I need to file quarterly individual estimated tax payments? If you owed additional tax for the prior tax year, you may have to make estimated tax payments for the current tax year. The first estimated payment for 2017 is due April 18, 2017. If you are filing as a sole proprietor, partner, S corporation shareholder, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. If you are filing as a corporation you generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return. If you had a tax liability for the prior year, you may have to pay estimated tax for the current year; however, if you receive salaries and wages, you can avoid having to pay estimated tax by asking your employer to withhold more tax from your earnings. A Indian CPA is somebody who has had a thorough instruction and has been prepared to meet high expert norms and take after a strict code of morals to get authorized by the American Establishment of Affirmed OpenIndian Tax Preparer in Frisco & Plano Bookkeepers.CPAs have broad learning and years of involvement with expense law, including state charge law (for instance, a Seattle-or Bellevue-based CPA is required to pass examinations appropriate to Washington state assess codes). Who Does Not Have To Pay Estimated Tax You do not have to pay estimated tax for the current year if you meet all three of the following conditions: You had no tax liability for the prior year You were a U.S. citizen or resident for the whole year Your prior tax year covered a 12-month period If you receive salaries and wages, you can avoid having to pay estimated tax by asking your employer to withhold more tax from your earnings. To do this, file a new Form W-4 with your employer. There is a special line on Form W-4 for you to enter the additional amount you want your employer to withhold. You had no tax liability for the prior year if your total tax was zero or you did not have to file an income tax return. How Do I Figure Estimated Tax? To figure your estimated tax, you must figure out your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year. If you estimated your earnings too high, simply complete another Form 1040-ES,Estimated Tax for Individualsworksheet to refigure your estimated tax for the next quarter. If you estimated your earnings too low, again complete another Form 1040-ES worksheet to recalculate your estimated tax for the next quarter. Prior to starting her own tax consulting practice, she had worked in the Accounting Firm in U.S and in India for more than 10 years. She has worked very closely with the partner in the preparation of IndividualTax Returns and Business TaxReturns. She has been very actively involved in the tax planning and consultation for the clients. Try to estimate your income as accurately as you can to avoid penalties due to underpayment. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90 percent of the tax for the current year, or 100 percent of the tax shown on the return for the prior year, whichever is smaller. Tip:When figuring your estimated tax for the current year, it may be helpful to use your income, deductions, and credits for the prior year as a starting point. Use your prior year's federal tax return as a guide and use the worksheet in Form 1040-ES to figure your estimated tax. You must make adjustments both for changes in your own situation and for recent changes in the tax law. Call US :-214-396-5400. Visit us :-http://avyantax.com/
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