List Of Estimated Tax Return For 2018 Ideas

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Understanding the Estimated Tax Return for 2018

Introduction

If you are a taxpayer in the United States, you are required to file your tax returns each year. One of the most important aspects of tax returns is the estimated tax return. In this article, we will take a closer look at what an estimated tax return is and how it relates to your 2018 tax return.

What is an Estimated Tax Return?

An estimated tax return is a payment of taxes that you make in advance of filing your tax return. The payments are made quarterly and are based on your estimated income and tax liability for the year. The payments are generally made using Form 1040-ES.

Why Do You Need to Make Estimated Tax Payments?

If you are self-employed or have income that is not subject to withholding taxes, you are required to make estimated tax payments. Failure to make these payments can result in penalties and interest charges when you file your tax return.

How to Calculate Your Estimated Tax Payments

To calculate your estimated tax payments, you will need to estimate your income and expenses for the year. This can be a challenging task, but there are tools and resources available to help you. The IRS provides a worksheet in Form 1040-ES that you can use to calculate your payments.

When Are Estimated Tax Payments Due?

Estimated tax payments are due quarterly throughout the year. The due dates are as follows: - April 15th (1st quarter) - June 15th (2nd quarter) - September 15th (3rd quarter) - January 15th of the following year (4th quarter)

What Happens if You Overpay Your Estimated Taxes?

If you overpay your estimated taxes, you will receive a refund when you file your tax return. This can be a great way to save money for future expenses or to pay down debt.

What Happens if You Underpay Your Estimated Taxes?

If you underpay your estimated taxes, you may be subject to penalties and interest charges when you file your tax return. It is important to make sure that you are making accurate and timely payments to avoid these penalties.

How to Make Your Estimated Tax Payments

There are several ways to make your estimated tax payments. You can make payments online using the IRS Direct Pay system or by using a credit or debit card. You can also mail in your payments using Form 1040-ES.

Filing Your Tax Return

When you file your tax return, you will need to report your estimated tax payments on Form 1040. This will help to reduce your tax liability and may result in a refund if you overpaid your estimated taxes.

Conclusion

In conclusion, understanding the estimated tax return for 2018 is an important aspect of managing your taxes as a taxpayer in the United States. By making timely and accurate payments, you can avoid penalties and interest charges and ensure that you are in compliance with the tax laws.

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