Q&A of the Week October 20, 2021

Question:

Who has to pay estimated quarterly taxes?

Answer:

You have to pay estimated quarterly tax if you are a sole proprietor, partner, or S corporation shareholder and you expect to owe $1,000 after your tax return is filed.

You do not have to pay estimated taxes for 2021 if you were a U.S. Citizen or resident alien for all of 2020 and you did not have tax liability for all of 2020.

Form 1040-ES provides information about estimated taxes as well as a worksheet to help determine your estimated quarterly tax payments.