For estimated tax purposes, the year is divided into four payment
periods. Each period has a specific payment due date. If you do not
pay enough tax by the due date of each of the payment periods, you may
be charged a penalty even if you are due a refund when you file your
income tax return. The following chart gives the payment periods and
due dates for estimated tax payments.
For the period:
Due date: |
|Jan. 1* through March 31
||April 15 |
|April 1 through May 31
||June 15 |
|June 1 through August 31
||September 15 |
|Sept. 1 through Dec. 31
||Jan. 15 next|
|*If your tax year does not begin on January 1, see
Fiscal year taxpayers, later. |
|**See January payment, later.
Saturday, Sunday, holiday rule.
If the due date for making an estimated tax payment falls on a
Saturday, Sunday, or legal holiday, the payment will be on time if you
make it on the next day that is not a Saturday, Sunday, or legal
holiday. For example, a payment due Sunday, April 15, 2001, will be on
time if you make it by Monday, April 16, 2001.
If you file your 2001 Form 1040 or Form 1040A by January 31, 2002,
and pay the rest of the tax you owe, you do not need to make your
estimated tax payment that would be due on January 15, 2002.
Janet Adams does not pay any estimated tax due for 2001. She files
her 2001 income tax return and pays the balance due as shown on her
return on January 24, 2002.
Janet's estimated tax for the fourth payment period is considered
to have been paid on time. If she must pay a penalty for not making
2000 estimated tax payments, she will have no penalty for that period.
Any penalty for the other payment periods will be figured up to
January 24, 2002.
Fiscal year taxpayers.
If your tax year does not start on January 1, your payment due
- The 15th day of the 4th month of your fiscal year,
- The 15th day of the 6th month of your fiscal year,
- The 15th day of the 9th month of your fiscal year, and
- The 15th day of the 1st month after the end of your fiscal
You do not have to make the last payment listed above if you file
your income tax return by the last day of the first month after the
end of your fiscal year and pay all the tax you owe with your return.
When To Start
You do not have to make estimated tax payments until you have
income on which you will owe the tax. If you have income subject to
estimated tax during the first payment period, you must make your
first payment by the due date for the first payment period. You can
pay all your estimated tax at that time, or you can pay it in four
installments. If you choose to pay in installments, make your first
payment by the due date for the first payment period. Make your
remaining installment payments by the due dates for the later periods.
No income subject to estimated tax during first period.
If you first have income subject to estimated tax during a later
payment period, you must make your first payment by the due date for
that period. You can pay your entire estimated tax by the due date for
that period or you can pay it in installments by the due date for that
period and the due dates for the remaining periods. The following
chart shows the dates for making installment payments.
|If you first have income on which you
must pay estimated tax:
|Make later installments by:
|Before April 1
||June 15 |
|September 15 |
|January 15 |
| next year* |
|After March 31 and before |
| June 1
||September 15 |
|January 15 |
| next year* |
|After May 31 and before|
| Sept. 1
||January 15 |
| next year* |
|After August 31
||January 15 |
| next year*
|*See January payment and Saturday,
Sunday, holiday rule under When To Pay Estimated Tax,
Change in estimated tax.
After making your first estimated tax payment, changes in your
income, adjustments, deductions, credits, or exemptions may make it
necessary for you to refigure your estimated tax. Pay the unpaid
balance of your amended estimated tax by the next payment due date
after the change or in installments by that date and the due dates for
the remaining payment periods.
How much to pay to avoid penalty.
To determine how much you should pay by each payment due date, see
How To Figure Each Payment, later. If the earlier
discussions of No income subject to estimated tax during first
period or Change in estimated tax apply to you, you
may need to read the explanation of the Annualized Income
Installment Method, later, to avoid a penalty.
Farmers and Fishermen
If at least two-thirds of your gross income for 2000 or 2001 is
from farming or fishing, you have only one payment due date for your
2001 estimated tax -- January 16, 2002. The due dates for the
first three payment periods, discussed earlier under When To Pay
Estimated Tax, do not apply to you.
If you file your 2001 Form 1040 by March 1, 2002, and pay all the
tax you owe, you do not need to pay estimated tax.
On a joint return, you must add your spouse's gross income to your
gross income to determine if at least two-thirds of your total gross
income is from farming or fishing.
Your gross income is all income you receive in the form of money,
goods, property, and services that is not exempt from tax. To
determine whether two-thirds of your gross income for 2000 was from
farming or fishing, use as your gross income the total of the
income (not loss) amounts shown in the following locations.
- Form 1040, lines 7, 8a, 9, 10, 11, 15b, 16b, 19, 20b, and
- Schedule C (Form 1040), line 7.
- Schedule C-EZ (Form 1040), line 1.
- Schedule D (Form 1040), line 1, column f (gains only), and
lines 8 and 13, column f (gains only).
- Schedule D-1 (Form 1040), line 1, column f (gains
only), and line 8, column f (gains only).
- Schedule E (Form 1040), lines 3, 4, 36, and 38.
- Schedule F (Form 1040), line 11.
- Form 2439, Box 1a.
- Form 4684, lines 15 and 36.
- Form 4797, line 2, column g (gains only), and line 6 (gains
- Form 6252, line 26 or line 37 (gains only).
- Form 6781, line 8, column c (gain only), and line 9, column
c (gain only).
- Form 8824, line 22 (unless the installment method
- Form 4835, line 7.
- Schedule K-1 (Form 1065), lines 15b and 15c (less any
partnership amounts included in (1) through (14)).
Also add your pro rata share of S corporation gross income
(less any S corporation amounts included in (1) through (14)).
Gross income from farming.
This is income from cultivating the soil or raising agricultural
commodities. It includes the following amounts.
- Income from operating a stock, dairy, poultry, bee, fruit,
or truck farm.
- Income from a plantation, ranch, nursery, range, orchard, or
- Crop shares for the use of your land.
- Gains from sales of draft, breeding, dairy, or sporting
For 2000, gross income from farming is the total of the amounts
from line 11 of Schedule F (Form 1040), Profit or Loss From
Farming, and line 7 of Form 4835, Farm Rental Income and
Expenses, plus your share of a partnership's or S corporation's
gross income from farming, your share of distributable net income from
farming of an estate or trust, and your gains from sales of draft,
breeding, dairy, or sporting livestock shown on Form 4797, Sales
of Business Property.
Wages you receive as a farm employee and wages you receive from a
farm corporation are not gross income from farming.
Gross income from fishing.
This is income from catching, taking, harvesting, cultivating, or
farming any kind of fish, shellfish (for example, clams and mussels),
crustaceans (for example, lobsters, crabs, and shrimp), sponges,
seaweeds, or other aquatic forms of animal and vegetable life.
Gross income from fishing includes the following amounts.
- Income for services as an officer or crew member of a vessel
while the vessel is engaged in fishing.
- Your share of a partnership's or S corporation's gross
income from fishing.
- Income for services normally performed in connection with
Services normally performed in connection with fishing include
shore service as an officer or crew member of a vessel engaged in
fishing and services that are necessary for the immediate preservation
of the catch, such as cleaning, icing, and packing the catch.
Fiscal year farmers and fishermen.
If you are a farmer or fisherman, but your tax year does not start
on January 1, you can either:
- Pay all your estimated tax by the 15th day after the end of
your tax year, or
- File your return and pay all the tax you owe by the 1st day
of the 3rd month after the end of your tax year.
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