Tax Payment GuiDE

What it is:

A balance due payment is the amount you owe after filing your tax return. If your return
shows that you still owe money, this is the amount you must pay to avoid penalties and
interest.

When to pay:

By the tax deadline (typically April 15).

What it is:

Estimated payments are made during the year if you don’t have enough tax withheld from
your income. This applies to freelancers, business owners, or those with investment
income.

When to pay:

Quarterly — usually due in April, June, September, and January.

What it is:

Filing an extension gives you more time to file your tax return (usually until October), but
not more time to pay. To avoid late payment penalties and interest, you must pay your
estimated tax due by the April deadline.

How much should I pay with an extension?

If your tax situation is similar to last year:

• If you made estimated payments last year:
  Pay the amount you owed last year as a balance due plus your first quarterly
  estimated payment.
• If you did not make estimated payments last year:
  Pay the same amount you owed as a balance due last year.

Example:
If you owed $3,000 last year and typically pay $1,000 quarterly in estimates, your
extension payment would be about $4,000.

Will I get a refund if I overpay?
Yes! If you pay more than you owe, the IRS and your state will refund the extra after your
return is processed.

When to pay:
By April 15 (or your state’s deadline), even if you file your return later.