How do I know if I need to pay estimated taxes?

In Arizona, you will need to pay estimated taxes if you are self-employed, do not have taxes withheld from your income, or owe taxes on other income that is not subject to withholding such as investment income. If you are an employee, your employer is generally responsible for withholding taxes from your wages and other income. However, if you have multiple sources of income, or if you have income sources that are not subject to withholding, then you may be required to pay estimated taxes. This includes income from rental properties, royalties, tips, bonuses, estates, trusts, gains from the sale of assets, certain types of social security benefits, and wages received on assigning a portion of the proceeds from the sale of a business. You may also be required to pay estimated taxes if you live in Arizona and pay taxes in another state or if you owe taxes on business or investment income that is not subject to withholding. The Arizona Department of Revenue provides forms for calculating estimated taxes. You are required to make estimated tax payments if your total tax liability for the year is at least $500. Those payments are due on April 15th, June 15th, September 15th, and January 15th of the following calendar year. Penalties may be imposed for unpaid or late payments. If you are unsure whether you need to pay estimated taxes in Arizona, you should consult a qualified tax professional or the Arizona Department of Revenue for assistance.

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How do I know if I need to pay estimated taxes?

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