Estimated tax is paid by using Form 1040ES, Estimated Tax for Individuals.
Taxpayers should figure their estimated tax based on their expected adjusted gross income (AGI), taxable income, taxes, and credits for the current year. To be safe, taxpayers may want to pay more than the required minimum 90% of the total tax liability on the current year's tax return.
Taxpayers can choose to pay their estimated tax:
- Either at once or by installments
- By applying an overpayment from this year's Form 1040A or 1040
- Electronically or by mail
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