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Estimated Taxes
You must make estimated tax payments if you expect to owe at least $1,000 in tax for 2005. Taxpayers with interest, dividends, rental, large capital gain, self employment or retirement income may be subject to estimated taxes. You do not have to pay estimated tax if you were a U.S. citizen or a resident alien for all of 2004 and you had no tax liability for the full 12-month 2004 tax year. |
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Generally you must pay in either 100% (110% if your prior years Adjusted Gross Income is more than $150,000) of your prior years taxes or 90% of your expected current year tax liability.
Use the worksheet on page 4 of the 1040ES instructions to figure your estimated tax payments. See link to IRS Form 1040ES for 2005 below. | |
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Estimated tax payment due dates are:
- 1st payment..................April 15
- 2nd payment..................June 15
- 3rd payment..................September 15
- 4th payment..................January 15
Write 1040ES, your social security number and the year for which you are paying on your check or money order. Send your payment, (payable to U.S. Treasury) and the 1040ES coupon (download from IRS.gov) to the address shown on page 6 of the 1040ES instructions.
Click THIS LINK to download IRS Form 1040ES for 2005 (Adobe Acrobat Reader required).
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| ©2010 Michael Johnston, CPA. All Rights Reserved. |
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