In the US the IRS has given some assistance to taxpayers who are due to make estimated tax payment. This group of taxpayers includes individuals who are not subject to tax withholding tax source from wages, such as self employed persons, and people who are employed but have not had sufficient tax deducted from wages. According to IRS advice the estimated tax must be paid this year if a taxpayer anticipates that a tax liability of more than USD 1,000 will arise when filing the tax return. The IRS points out that there are specific rules applicable in the case of farmers and fishermen.
Generally tax payments on an estimated basis must be submitted four times in the year, and the calculation of the amount of tax payable is done using Form 1040-ES (Estimated Tax for Individuals). The guidance provided on this form is therefore applicable to individuals attempting to compute the amount of estimated tax payable. Taxpayers may also use Publication 505 that deals with Withholding and Estimated Tax. This has been updated to include additional provisions to be taken into account for 2014.
