Avoid Falling Behind on Estimated Tax Payments

1. Avoid Falling Behind on Estimated Tax Payments If you are self-employed, then you have to make quarterly estimated tax payments. The due date for the first estimated tax payment of 2018 is April 17, 2018. However, it is a good strategy to make the payments monthly to avoid a large payment in April that you cannot afford to make. How to calculate your estimated tax payment Most tax professionals that prepare tax returns will provide you with payment vouchers. These vouchers contain the date and amount that should be paid each quarter. If you divide that quarterly figure by 3, then you will have a good monthly figure to guide you. Alternatively, if you do not have vouchers. Then, you can look at the total tax on line 63 of the 2017 Form 1040. Divide that figure by 4 to get the quarterly estimated amount or divide it by 12 for a monthly amount. How to make the estimated tax payment The most efficient and simple way to make an estimated tax payment is online. It is free. Visit https://www.irs.gov/payments/direct-pay. Then, do the following: 1.Click “make a payment” 2.Select reason for payment – Estimated tax 3.Apply payment to – 1040ES 4.Tax year – 2018 If you prefer to mail your payment, then you can find the address based on the state you reside in by going to https://www.irs.gov/filing/where-to-file-addresses-for-taxpayers-and-tax- professionals-filing-form-1040-es. Back Taxes or 2018 Taxes The answer here is simple. Make sure to pay the 2018 taxes first. The IRS will not resolve your back taxes unless you are current with existing taxes. The IRS wants to confirm that you will

2. stop owing more. Plus, you can use the current taxes you are paying as an expense to help your settlement efforts. If you owe the IRS back taxes, or have unfiled returns, call us today at 866-640-0640 for a free consultation. Victory Tax Lawyers will work with you to develop a game plan to resolve your tax issues.