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Arizona Form 140ES Individual Estimated Tax Payment Azdor

Arizona Form 140ES Individual Estimated Tax Payment Azdor

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Instructions and help about Arizona Form 140ES Individual Estimated Tax Payment Azdor

for over 80 years the federal income tax system has been a pay as you go system rather than pay your entire tax liability when you file your taxes you pay your tax throughout the year usually through tax withheld at the income Source that's fine if your income is subject to withholding such as wages or pensions but how do you pay as you go when your income is not subject to withholding such as business or investment income that's what today's video is all about I'm the tax GE and here are estimated payments oversimplified [Music] in order to avoid penalties for not paying your income taxes throughout the year you must prepay either 100% of the previous year's tax liability or 90% of the current year's tax liability which ever is lower and what's more prepayments must be made evenly throughout the year so if you anticipate a large tax liability and pay 95% of it in December you may still find your self paying an underpayment penalt

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