Helen expects to have a tax liability of $9,000. She will have $6,000 withheld from her wages, and she knows that she will not be eligible for any available tax credits. Her estimated tax is $3,000. Generally, by what date should she make her first estimated payment?

Question

April 15th.
June 15th.
September 15th.
January 15th of the following year.

Answer 1

For estimated tax payments, taxpayers generally need to make quarterly payments if they expect to owe $1,000 or more in tax after subtracting their withholding and credits.

Since Helen expects a tax liability of $9,000 and has $6,000 withheld, her estimated tax payment will be $3,000. To avoid penalties, she must pay either at least 90% of the current year's tax liability or 100% of the previous year's tax liability (110% if higher income).

For the current year:

1. First quarter payment: Due April 15
2. Second quarter payment: Due June 15
3. Third quarter payment: Due September 15
4. Fourth quarter payment: Due January 15 of the following year

Since she needs to make her first estimated payment for the year on the tax expected to owe, her first estimated payment is due by April 15th.

So the answer is April 15th.