How Can I Find Out How Much Estimated Tax I Have Paid
Woman's hand completing income tax forms next to a calculator.
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When you're running your own business concern, you demand to brand estimated tax payments every quarter so you don't find yourself facing unexpected fines when y'all file your taxes. However, you lot need to know just how much you paid in estimated taxes then you know how much you owe in taxes come up April. There are multiple methods you can use to remind yourself how much y'all paid during the year.
Definition of Estimated Taxes
Estimated taxes use to whatsoever income you receive that isn't subject to tax withholding, such as self-employment income, rent, alimony and prizes. You lot tin pay these estimated taxes each quarter past filing an IRS Form 1040-ES. These can be filed online through the IRS Electronic Federal Tax Payment System, by mail or through your choice of revenue enhancement software.
Importance of Knowing Your Estimated Taxes
Knowing how much you lot paid in estimated taxes is important, because this directly affects how much you volition owe for the twelvemonth in Apr. If y'all estimated your taxes incorrectly or if you lot didn't pay your estimated taxes on fourth dimension, you may be charged a penalty. In dissimilarity, if you somehow overestimated and overpaid your taxes, yous may qualify for a refund.
Discovering Estimated Taxation Payments Through the IRS
When you're filling out your Form 1040 taxes and you get to line 10, you'll be asked exactly how much you paid in estimated taxes for the year. This volition count as a tax credit against how much you owe. At this point, you'll demand to look into your IRS records to encounter just how much you paid via Form 1040-ES. If yous paid online via the IRS EFTPS, then accessing these payment records is easy. Simply log in to your EFTPS account and check the history of all your tax payments. If yous didn't pay online, you tin still order a free IRS transcript and get an business relationship of the electric current tax twelvemonth.
Other Methods for Finding Estimated Tax Payments
You tin check your bank, debit carte or credit card statements for payments made effectually each quarter to the IRS. If the estimated tax is the but payment you'd exist making to the IRS, and then information technology would exist elementary to identify that information. If you lot fabricated your payments through tax software or recorded your payments in your accounting software as you made them, then just reviewing the records in your software or importing your accounting file into this year'due south tax software should be enough to retrieve a history of your payments.
Source: https://www.sapling.com/5728974/irs-estimated-taxes-paid
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