Do I Need To Pay Estimated Taxes?

Many people who have taxable income from which taxes are not withheld may be required to make estimated tax payments during the year in order to avoid tax underpayment penalties, even if the tax that is owed is paid when the return is filed.

This includes:

• People who are not working but receive unemployment benefits, taxable disability income benefits, or who live off of investment income.
• People who are working but are self-employed or work part time for several different employers.

The fact that you have or had a serious health condition does not affect the requirement to pay estimated taxes.

For more information about estimated taxes -- including how to compute them and when to make payments -- the IRS has yet a handy reference: Publication 505 available at http://www.irs.gov/publications/p505/index.html .

You can see the tax form 1040ES "Estimated Tax For Individuals" at http://www.irs.gov/pub/irs-pdf/f1040es.pdf

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