To make your first estimated tax payment by April 15th, follow these steps:

Calculate Your Estimated Tax Liability

• Estimate Your Income: Project your income for the year, including wages, dividends, interest, and any other sources.
• Deductions and Credits: Estimate your deductions and credits to reduce your taxable income.
• Tax Rate: Apply the appropriate tax rate to your estimated taxable income to calculate your estimated tax liability.

Determine the Payment Amount

• Previous Year’s Tax: Use the previous year’s tax liability as a baseline if your income and deductions are similar.
• Safe Harbor Rule: To avoid penalties, pay at least 90% of your current year’s tax liability or 100% of the previous year’s tax liability (110% if your adjusted gross income exceeds $150,000).

Complete Form 1040-ES

• Form 1040-ES: Use Form 1040-ES to calculate and pay your estimated taxes. This form includes worksheets to help you determine the amount to pay.
• Payment Vouchers: Use the payment vouchers included with Form 1040-ES to submit your payment.

Submit Your Payment

• Electronic Payment: You can pay online using the IRS Direct Pay, Electronic Federal Tax Payment System (EFTPS), or through your tax software.
• Mail Payment: If you prefer to mail your payment, send the completed payment voucher along with a check or money order to the address specified on Form 1040-ES.

Record Keeping

• Keep Records: Maintain records of your estimated tax payments, including confirmation numbers for electronic payments and copies of payment vouchers for mailed payments.

Monitor and Adjust

• Quarterly Payments: Estimated tax payments are due quarterly (April 15, June 15, September 15, and January 15 of the following year). Monitor your income and expenses throughout the year and adjust your estimated payments if necessary.

Example Calculation

1. Estimate Income: $100,000
2. Estimated Housing: 30,000
3. Deductions: $20,000
4. Taxable Income: $80,000
5. Tax Rate: 22%
6. Estimated Tax Liability: $17,600
7. SE Tax Liability: $18,368.42
8. Quarterly Payment: $35,968.42 / 4 = $8,992

If you need more specific advice, it might be helpful to contact Pro Advisor Support to answer your questions.

Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR | Consulting
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421.0101

Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com