Start A Business

Step 8: Estimated Tax

Generally, sole proprietors, partners, and shareholders of an S corporation pay tax on income by making regular payments of estimated tax during the year. If you expect to owe taxes, including self-employment tax of $1000 or more when you file your return, you generally have to make estimated tax payments. Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. If you are not required to make estimated tax payments, you may pay any tax due when you file your return.