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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
The tax you would have paid had *See Saturday, Sunday, holiday rule and How To Figure
you filed a separate return January payment. Each Payment
The total tax you and your You should pay enough estimated tax by the
spouse would have paid had Saturday, Sunday, holiday rule. If the due due date of each payment period to avoid a
you filed separate returns date for an estimated tax payment falls on a
Saturday, Sunday, or legal holiday, the pay- penalty for that period. You can figure your re-
ment will be on time if you make it on the next quired payment for each period by using either
Example. Joe and Heather filed a joint re- day that isn't a Saturday, Sunday, or legal holi- the regular installment method or the annual-
turn for 2020 showing taxable income of day. ized income installment method. These meth-
$48,500 and a tax of $5,428. Of the $48,500 ods are described in chapter 2 of Pub. 505. If
taxable income, $40,100 was Joe's and the rest January payment. If you file your 2021 Form you don't pay enough during each payment pe-
was Heather's. For 2021, they plan to file mar- 1040 or 1040-SR by January 31, 2022, and pay riod, you may be charged a penalty even if you
ried filing separately. Joe figures his share of the rest of the tax you owe, you don't need to are due a refund when you file your tax return.
the tax on the 2020 joint return as follows. make the payment due on January 18, 2022. If the earlier discussion of No income sub-
Fiscal year taxpayers. If your tax year doesn't ject to estimated tax during first period or the
Tax on $40,100 based on a start on January 1, see the Form 1040-ES in- later discussion of Change in estimated tax ap-
separate return . . . . . . . $4,618 structions for your payment due dates. plies to you, you may benefit from reading An-
Tax on $8,400 based on a nualized Income Installment Method in chap-
separate return . . . . . . . 843 When To Start ter 2 of Pub. 505 for information on how to avoid
Total . . . . . . . . . . . . . . . $5,461 a penalty.
Joe's percentage of total You don't have to make estimated tax pay- Underpayment penalty. Under the regular in-
ments until you have income on which you will
($4,618 ÷ $5,461) . . . . . . 85% stallment method, if your estimated tax payment
Joe's share of tax on joint owe income tax. If you have income subject to for any period is less than one-fourth of your es-
return estimated tax during the first payment period, timated tax, you may be charged a penalty for
($5,428 × 85%) . . . . . . . $4,614 you must make your first payment by the due underpayment of estimated tax for that period
date for the first payment period. You can pay when you file your tax return. Under the annual-
all your estimated tax at that time, or you can ized income installment method, your estimated
How To Figure pay it in installments. If you choose to pay in in- tax payments vary with your income, but the
Estimated Tax stallments, make your first payment by the due amount required must be paid each period. See
date for the first payment period. Make your re-
Instructions for Form 2210 for more information.
maining installment payments by the due dates
To figure your estimated tax, you must figure for the later periods. Change in estimated tax. After you make an
your expected adjusted gross income (AGI), estimated tax payment, changes in your in-
taxable income, taxes, deductions, and credits No income subject to estimated tax during come, adjustments, deductions, or credits may
for the year. first period. If you don't have income subject make it necessary for you to refigure your esti-
When figuring your 2021 estimated tax, it to estimated tax until a later payment period, mated tax. Pay the unpaid balance of your
may be helpful to use your income, deductions, you must make your first payment by the due amended estimated tax by the next payment
and credits for 2020 as a starting point. Use date for that period. You can pay your entire es- due date after the change or in installments by
your 2020 federal tax return as a guide. You timated tax by the due date for that period or that date and the due dates for the remaining
can use Form 1040-ES and Pub. 505 to figure you can pay it in installments by the due date payment periods.
your estimated tax. Nonresident aliens use for that period and the due dates for the remain-
Form 1040-ES (NR) and Pub. 505 to figure esti- ing periods. Estimated Tax Payments
mated tax (see chapter 8 of Pub. 519 for more Not Required
information). Table 4-1. General Due Dates for
You must make adjustments both for Estimated Tax You don't have to pay estimated tax if your with-
changes in your own situation and for recent Installment Payments holding in each payment period is at least as
changes in the tax law. For a discussion of much as:
these changes, visit IRS.gov. If you first Make Make later
For more complete information on how to have income installments installments • One-fourth of your required annual pay-
figure your estimated tax for 2021, see chap- on which you by:* by:* ment, or
ter 2 of Pub. 505. must pay • Your required annualized income install-
estimated tax: ment for that period.
When To Pay Estimated Before April 1 April 15 June 15 You also don't have to pay estimated tax if you
Sept. 15
Tax Jan. 15, next will pay enough through withholding to keep the
amount you owe with your return under $1,000.
year
For estimated tax purposes, the tax year is divi-
ded into four payment periods. Each period has April 1–May 31 June 15 Sept. 15 How To Pay Estimated Tax
a specific payment due date. If you don't pay Jan. 15, next
enough tax by the due date of each payment year There are several ways to pay estimated tax.
period, you may be charged a penalty even if June 1–Aug. 31 Sept. 15 Jan. 15, next • Credit an overpayment on your 2020 return
you are due a refund when you file your income year to your 2021 estimated tax.
tax return. The payment periods and due dates After Aug. 31 Jan. 15, next (None)
for estimated tax payments are shown next. year • Pay by direct transfer from your bank ac-
count, or pay by debit or credit card using
a pay-by-phone system or the Internet.
For the period: Due date:* *See Saturday, Sunday, holiday rule and January
payment. • Send in your payment (check or money or-
Jan. 1–March 31 . . . . . . April 15 der) with a payment voucher from Form
April 1–May 31 . . . . . . . June 15 How much to pay to avoid a penalty. To de- 1040-ES.
June 1–August 31 . . . . . Sept. 15 termine how much you should pay by each pay-
Sept. 1–Dec. 31 . . . . . . Jan. 18, next year ment due date, see How To Figure Each Pay-
ment next.

Chapter 4 Tax Withholding and Estimated Tax Page 41