Tax payments throughout the year

The IRS and most states with income taxes (CT included) require that you pay your income tax due throughout the year. For employees of a business who receive a W2 at the end of the year, this process is largely invisible. Taxes are withheld from your paycheck and sent to the IRS or state agency periodically. At the end of the year, when you file a tax return, if these payments are less than your total amount owed you pay with your tax return. If you paid too much, you get a refund.

Estimated payments

Some tax payers such as self employed individuals or partners in a partnership do not have amounts withheld throughout the year because they, the business owner, are the one who would be doing the withholding. As a result, these individuals must make quarterly estimated payments. These amounts are due April 15th, June 15th, September 15th, and January 15th (of the next year.)

If you experience any sort of windfall during the tax year, such as a sale of stock or other assets at a gain, you are also required to send in an estimated payment if that windfall will mean your payments throughout the tax year will be less than 100% of your taxes owed the last year, or 90% of the taxes owed this year.

How much to pay

By the end of the year, self employed individuals or partners in a partnership must have paid the lower of 100% of the taxes they owed the year prior, or 90% of the taxes you owe in the current year or be subject to interest and penalties (these are not usually punishingly high, but avoiding them means more money in your pocket).

If we prepared your tax return last year, we can provide vouchers based on the prior year results. If you expect your results to differ significantly from the year prior, we can prepare a tax estimate to advise you on the amounts you should pay. Our fee for a tax estimate depends on the complexity of your return. You can contact us via the information at the bottom of every page of this website for a quote.

How to pay

Federal estimated payments can be made online at this link: https://www.irs.gov/payments

To send the IRS a check, fill out an estimated payment voucher as found at this link: https://www.irs.gov/forms-pubs/about-form-1040-es. Instructions included at that link include the address to which you should send the voucher and check, which varies by state. Connecticut taxpayers should use the following address to send IRS estimated payments (information updated 6/20/2022):

Internal Revenue Service

P.O. Box 931100

Louisville, KY 40293-1100

Connecticut estimated payments can be made online at this link: https://portal.ct.gov/DRS/Individuals/Individual-Tax-Page/Estimated-Income-Tax

PLEASE NOTE: the link above is for Personal CT estimated payments. If you need to make a payment for the CT Pass Through Entity Tax (for example for your LLC, or partnership) Please use MyConneCT. More info on the CT Pass Through Entity Tax at this link.

The same link has a PDF of a CT estimated payment voucher, if you’d prefer to pay by check. The PDF has instructions including the address for mailing.