Which Estimated Tax Calculator Should I Use?

Each of the three calculators will provide an estimated tax calculation based on the information that you provide and will allow you to print an IRS approved payment coupon with your data included, ready to mail with your check. The calculation that is best for you will depend on your specific facts and circumstances.

If you expect your earnings and deductions to be about the same as last year, you should consider using the Quick Estimated Tax Payment Calculator. This calculator will provide estimated payment amounts that -- when added to your expected withholdings for the current year -- will approximate the total tax that you paid last year.

If you expect your earnings to be significantly higher than they were last year, you should consider using the Safe Harbor Estimated Tax Payment Calculator. This calculator will provide the minimum amount of Estimated Tax Payments that you need to make in order to avoid any IRS penalties of underpayment of estimated taxes. Since your income will be higher, your taxes will also be higher, so you will need to be prepared to write a check to send with your tax return when you file on April 15th. However, by paying only the minimum estimated taxes required, you would have the benefit of keeping your money longer rather than sending it to the IRS before you have to.

If you expect your earnings to be significantly lower than last year, you should consider using the Detailed Estimated Tax Payment Calculator. You should also use this calculator if your situation is totally different than last year -- for example, if this is the first year of your new business. This calculator will need your estimates for many factors related to your business income and expenses as well as detailed information about you, such as filing status, exemptions, itemized deductions, etc. This calculator requires the most information and -- subject to the accuracy of that information -- it will provide the most accurate estimate of your taxes and the estimated tax payments you should make.