Things You'll Need:
- Calculators
- File Cabinets
- Postage Stamps
- Calendars
- File Folders
- Paper And Pencils
- Personal Financial Software
- Tax Preparation Software
- Calculators
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Step 1
Determine your expected adjusted gross income. Do this by taking last year's income and adjust according to anticipated changes.
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Step 2
Subtract your expected deductions and exemptions to obtain your expected taxable income. Again, use last year's figures as a base.
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Step 3
Calculate the expected tax according to the tax table or tax schedules.
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Step 4
Subtract your expected credits.
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Step 5
Add any expected additional taxes. Self-employment Social Security taxes are the most common additional taxes.
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Step 6
Subtract your expected tax withholdings. What is left should be paid in estimated tax payments.
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Step 1
Multiply the total tax shown on your last year's tax return by 90 percent. For the tax year 2001, the last year is 2000.
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Step 2
Verify the total tax shown on your year-before-last tax return. For the tax year 2001, the year before last is 1999.
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Step 3
Determine the smaller of 100 percent of your tax for the tax year before last or 90 percent of your tax for last year.
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Step 4
Subtract your expected tax withholdings. What is left should be paid in estimated tax payments.
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Step 1
Obtain Form 1040-ES. Go to the local Internal Revenue Service office to get it, or order it by mail, phone or the Internet. It will come with four payment vouchers.
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Step 2
Divide your total amount of estimated tax payments by 4. You will be making four equal payments.
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Step 3
Send in the first payment with a 1040-ES voucher before April 16, 2001.
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Step 4
Send in the second payment with a 1040-ES voucher before June 15, 2001.
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Step 5
Send in the third payment with a 1040-ES voucher before September 15, 2001.
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Step 6
Send in the last payment with a 1040-ES voucher before January 15, 2002.








Comments
DenaEBolton said
on 1/15/2009 Some really good info. 5*