Tax Reform Tax Tip 2018-142: Taxpayers should find out if they need to make estimated or additional tax payments

Bookmark and Share Banner
IRS Tax Tips September 12, 2018

Useful Links:

Help For Hurricane Victims

News Essentials

What's Hot

News Releases

IRS - The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions

The Newsroom Topics

Multimedia Center

Noticias en Español

Radio PSAs

Tax Scams/Consumer Alerts

The Tax Gap

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News

IRS Resources

Compliance & Enforcement News

Contact Your Local IRS Office

Filing Your Taxes

Forms & Instructions

Frequently Asked Questions

Taxpayer Advocate Service

Where to File

IRS Social Media


Issue Number:    Tax Reform Tax Tip 2018-142

Taxpayers should find out if they need to make estimated or additional tax payments

The U.S. tax system operates on a pay-as-you-go basis. This means that taxpayers need to pay most of their tax during the year, as the income is earned or received. Taxpayers must generally pay at least 90 percent of their taxes throughout the year through withholding, estimated or additional tax payments or a combination of the two. If they don’t, they may owe an estimated tax penalty when they file. 

Taxpayers can pay their taxes throughout the year anytime. They must select the tax year and tax type or form when paying electronically. Filers paying by check should make it out to the “United States Treasury” and indicate the tax year and type of taxes they are paying.

Taxpayers who pay taxes through a combination of withholding and estimated tax payments should do a Paycheck Checkup. They can do a checkup using the Withholding Calculator on Doing so now can help the taxpayer avoid an unexpected tax bill and possibly a penalty when the taxpayer’s 2018 tax return is filed next year.

Here are some examples of people who may need to make estimated tax payments:

Individuals – including sole proprietors, partners and S corporation shareholders – may need to pay quarterly installments of estimated tax if:

  • they expect to owe at least $1,000 when they file their tax return
  • they owed additional tax when they filed their tax return last year

Other taxpayers who may need to make estimated payments include those who:

  • have more than one job, but don’t have each employer withhold taxes
  • are self-employed
  • are independent contractors
  • are representatives of a direct-sales or in-home-sales company
  • participate in sharing economy activities where they are not working as employees

For tax year 2018, the remaining estimated tax payment due dates are Sept. 17, 2018 and Jan. 15, 2019.

More Information:
Publication 505, Tax Withholding and Estimated Tax
Form 1040-ES, Estimated Tax for Individuals
Tax Reform

Share this tip on social media -- #IRSTaxTip: Taxpayers should find out if they need to make estimated or additional tax payments.

Back to Top

FaceBook Logo     Twitter Logo     LinkedIn Logo     YouTube Logo     IRS2go Logo

Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit

This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.