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2016 Federal Estimated Tax Calculator

Multiple Calculator release 2.0.7. Category: Finance. Check the displayed formula, units, assumptions, and limitations before use. Methodology · Report an error · Disclaimer
Reviewed by Calculator Editorial Team

Use this calculator to determine your 2016 federal estimated tax payments. The IRS requires most taxpayers to make estimated tax payments if they expect to owe $1,000 or more in federal income tax for the year. This calculator helps you determine the correct quarterly payments to avoid penalties.

How to Use This Calculator

To use this calculator, follow these steps:

  1. Enter your total estimated tax for 2016
  2. Select your filing status
  3. Click "Calculate" to see your quarterly payments
  4. Make your payments by the due dates

The calculator will show you the exact amount you need to pay each quarter. Remember that these are estimates - your actual tax bill may differ based on your final tax return.

Formula Used

The 2016 federal estimated tax payment is calculated using the following formula:

Quarterly Estimated Tax = (Total Estimated Tax for 2016) / 4

Where:

  • Total Estimated Tax is your best estimate of your 2016 federal income tax liability
  • The division by 4 accounts for the four quarterly payments required

For taxpayers with withholding that will be less than the smaller of 100% of their current year tax or 110% of their 2015 tax, the IRS requires estimated tax payments to be made.

Worked Example

Let's say you estimate you'll owe $12,000 in federal income tax for 2016. Here's how the calculation works:

Quarterly Payment = $12,000 / 4 = $3,000 per quarter

You would make four payments of $3,000 each by the following dates:

  • April 15, 2016
  • June 15, 2016
  • September 15, 2016
  • January 15, 2017

This example assumes you have no withholding or other credits that will cover part of your tax liability.

Frequently Asked Questions

When are the estimated tax payment due dates?
For 2016, the due dates are April 15, June 15, September 15, and January 15, 2017. Payments must be made by these dates to avoid penalties.
What if I can't pay the full amount by the due date?
You can make partial payments, but the total amount paid by the due date must equal your quarterly estimate. If you can't pay the full amount, you can make an installment agreement with the IRS.
What happens if I don't make estimated tax payments?
The IRS charges penalties for underpayment of estimated taxes. The penalty is 0.5% of the balance owed for each month or part of a month that a payment is late, up to a maximum of 25% of the unpaid tax for the year.
Can I use this calculator for self-employment taxes?
No, this calculator is for federal income tax only. You'll need to make separate estimated payments for self-employment tax if you're self-employed.