How will I know if I need to make an estimated payment?If you are required to file a tax return and your Virginia income tax liability, after subtracting income tax withheld and any allowable credits, is expected to be more than $150, then you must make estimated tax payments or have additional income tax withheld throughout the year from your wages or other income. Show
How to make an estimated paymentWe offer multiple options to pay estimated taxes.
See all options to file and pay estimated taxes. Electronic filing requirementYou must submit all of your income tax payments electronically if:
If any of the thresholds above apply to you, all future income tax payments must be made electronically.This includes all payments for estimated taxes, extensions of time to file, and any other amounts due when a return is filed. How to estimateYou must pay at least 90% of your tax liability during the year by having income tax withheld and/or making timely payments of estimated tax. An estimated payment worksheet is available through your individual online services account to help you determine your estimated tax liability and how many payments you should make. Log in and select "Make an Estimated Payment." See the instructions for Form 760, 760PY or 763 for more on computing your estimated tax liability. Farmers, fishermen and merchant seamenFarmers, fishermen and merchant seamen who receive 2/3 of their estimated Virginia gross income from self-employed farming or fishing have special filing requirements, which allow them to make fewer payments. If you meet the qualifications of a farmer, fisherman or merchant seaman, you only need to file an estimated payment (Voucher 4) by Jan. 15. If you file your income tax return on or before March 1 and pay the entire tax at that time, you are not required to file estimated tax payments for that tax year. Changes in income or exemptionsIf your expected Virginia adjusted gross income changes during the year, re-compute your estimated tax to determine how much your remaining payments should increase or decrease. A change in income, deductions or exemptions may require you to file an estimated payment later in the year. If you file your state income tax return and pay the balance of tax due in full by March 1, you are not required to make the estimated tax payment that would normally be due on Jan. 15. If you file your return after March 1 without making the January payment, or if you have not paid the proper amount of estimated tax on any earlier due date, you may be liable for an additional charge for underpayment of estimated tax. Underpayment of estimated income taxAn addition to tax is imposed by law if at least 90% (66 2/3% if you are a farmer, fisherman, or merchant seaman) of your total tax liability is not paid throughout the year by timely withholding and/or installments of estimated tax except in certain situations. The addition to tax does not apply if each required installment is paid on time and meets one of the following exceptions:
If you do not qualify for an exception, your underpayment computation will be based on 90% of the current year's income tax liability or 100% of your liability for the preceding year, whichever is less. The addition to tax is computed on Form 760C (or Form 760F for farmers, fishermen and merchant seamen). Joint estimated tax paymentsA married couple may file a joint Form 760ES unless:
If you file a joint Form 760ES, but do not file a joint income tax return, the estimated tax may be treated as the estimated tax of either spouse, or may be divided between both spouses as mutually agreed. Attach a statement to the front of each spouse's tax return that specifies the amount claimed by each spouse. How do I estimate my selfTo calculate your estimated taxes, you will add up your total tax liability for the current year—including self-employment tax, individual income tax, and any other taxes—and divide that number by four.
Do I have to pay quarterly estimated taxes selfAs a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly.
How do I pay quarterly taxes as a sole proprietor?How and When Do I Pay Self-Employment/Sole Proprietor Taxes? Quarterly estimated payments for federal taxes if you're self-employed or a sole proprietor are filed using Form 1040-ES vouchers, available online, at your local IRS office, or from your tax advisor or accountant.
Can I make all my estimated tax payments at once?Many people wonder, “can I make estimated tax payments all at once?” or pay a quarter up front? Because people might think it's a nuisance to file taxes quarterly, this is a common question. The answer is no.
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