Video instructions and help with filling out and completing Fill Form 2220 Estimated

Instructions and Help about Fill Form 2220 Estimated

Hi I'm Becky and I work for the Internal Revenue Service our income tax runs on a page ago basis that means we pay our taxes as we earn or receive income during the year either by having taxes withheld or by making quarterly estimated tax payments if you have income that's not subject to withholding you probably need to make these quarterly payments this includes but it's not limited to self-employment income interest dividends prizes and rental income it may also include sharing economy income or other activities where you are not an employee such as income you earn by renting a spare bedroom or other scenarios generally this income is taxable even if you don't receive an income statement normally you pay estimated tax in four equal quarterly payments using form 1040 es there are some exceptions here's the bottom line if you expect to oh at least a thousand dollars you may need to make estimated tax payments and if you pay too little tax during the year you may have to pay a penalty so if you have taxable income from any payer that doesn't withhold tax for you check to see if estimated taxes apply in your situation go to irs.gov slash pay-as-you-go to determine if you need to set up quarterly estimated tax payments or to consider increasing your withholding if you have an employer