Estimated Taxes

The IRS and Virginia both require for taxes to be paid throughout the year as they are earned. Taxes are paid in two ways; withholding and estimated tax payments. It is often necessary to make estimated payments throughout the year due to income that is not subject to mandatory withholding. Several examples include work performed as an independent contractor or sales of stocks and bonds at a gain.

The IRS recommends individuals expected to owe $1,000 or more and corporations expected to owe $500 or more when their return is filed to make estimated tax payments. Failure to make payments may result in penalties at tax filing time.

Making Estimated Tax Payments

Federal – IRS estimated payments can be made online directly with the IRS – IRS Payments

Virginia – payments can be made online directly with Virginia Tax – VA Payments