Estimated Taxes - Never Fall Behind On Your Taxes Again! (Estimated Payments)

(Estimated Tax and Estimate Tax Payments) How to calculate estimated tax step by step.

Free downloadable excel worksheet shown in video can be downloaded here:https://www.dropbox.com/s/pd0s2egpibqpi4e/Estimated%20tax%20Calculation%20worksheet.xlsx?dl=0

Happy Sunday YouTube family! Thanks in advance for continuing to DESTROY the like button, commenting and for sharing these videos with others. I know this a long video, but I think you will get a lot out of it if you watch it from start to finish. Several subscribers have requested this topic. I spent a lot of time producing this video so I really hope you enjoy it and find it educational/helpful. By a lot of time I mean like 20 hours to create the spreadsheet, film, and edit the video, etc so really hoping you all get a lot of it. This video is designed to help you better understand estimated taxes. The spreadsheet is not a perfectly precise tax calculator, however, it should get you within the ball park and give you a much better understanding of how estimated tax works.

There are two other videos related to estimated taxes that I recommend you check out in addition to this video:

How to make estimated tax payments step by step: https://youtu.be/rjTMjAvRyhM

Estimate Tax Payment Rules For Individuals: https://youtu.be/unzt2dOoYhQ
Time Stamps so you jump to, or rewind to key points in the video.

1:25 - Estimated tax spreadsheet and how it works.
2:30 - Marginal rate, capital gain rate, and self-employment tax.
4:56 - Marginal rate vs effective rate
6:42 - Income subject to estimated taxes
12:17 - Estimated tax payment periods
14:10 - Example# 1 Full example of estimate tax calculation
21:45 - Example estimate tax payment voucher
22:23 -Example 2: Short example of estimate tax calculation star
23:49 Flexibility with estimated tax payments
24:30 Final thoughts/review.

Estimated tax is a method used to pay tax on income that is not subject to tax withholdings. This includes income such:

- Self-employment income
- Interest
- Dividends
- Alimony
- Rent
- Pension
- Capital gains
- Prizes, etc

Basically any other income you make outside of wages. Wages are not listed here, because wages are subject to income tax withholdings.

Estimated tax can be used both on income tax and self-employment tax. Many people do not know this, but during the course of the year if you determine you are not withholding enough federal income taxes on your paycheck you can use estimated tax payments to help you get caught up.

There are also instructions of how to pay your estimates that can be located in publication 505.

How can I make sure I avoid underpayment penalties?

To quickly determine your total projected tax for current year you can view the IRS website withholding calculator.

To quickly determine the total tax you paid in the previous year you can look at your prior year tax return 1040 page 2. Look for the line that says total tax line 63.

Where to learn more about estimated taxes

IRS Publication 505
https://www.irs.gov/pub/irs-pdf/p505.pdf

Видео Estimated Taxes - Never Fall Behind On Your Taxes Again! (Estimated Payments) канала Money and Life TV