Procedure for Paying Advance Income Tax in the United States

There are two convenient methods to pay your advance income tax in the United States: through the official Internal Revenue Service (IRS) website, or directly through TIN-NSDL website. Follow this step-by-step guide to ensure you meet your tax obligations on time and accurately.

Steps for Payment of Advance Tax

Step 1: Visit the IRS Official Website or TIN-NSDL Website
Begin by visiting the official IRS website or TIN-NSDL website.

Payment Due Dates and Requirements

The IRS and TIN-NSDL specify certain dates before which you must pay your advance tax. Before these dates, you must estimate your total income for the upcoming tax year and compute the estimated tax based on your income. If you predict that there will be no tax liability, you may not need to pay advance tax.

The payment is due on the following dates:
15 June
15 September
15 December
15 March

Step 2: Estimate Your Total Annual Income
You need to take a thorough look at your projected income for the tax year.

Step 3: Calculate the Tax Payable
Based on your estimated income, calculate the tax that you will owe for the year.

Step 4: Pay Advance Tax in Four Installments
The advance tax can be paid in four installments:

First Installment: Pay 15% of the tax by 15 June Second Installment: Pay 40% of the tax payable and less of what was paid in advance by 15 September Third Installment: Pay 75% of the tax payable less of what was paid in advance by 15 December Final Installment: Pay the remaining balance by 15 March

Payment Methods for Advance Tax

Method 1: Paying via Authorized Bank Branch
You can pay the estimated tax at any authorized bank branch. Fill out Form 1040-ES and submit the Challan 280.

Method 2: Paying Online
Alternatively, you can pay thru the IRS website or TIN-NSDL website by filling out the necessary forms and providing the required details.

Details Required for Payment

Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) Your Assessment Year Your Address Your Email ID and Contact Number The Challan 280 form detailing the payment amount and tax due

Once the payment is completed, you must submit the Challan 280 form along with the required details. If you are paying off-line, you can submit the form and payment in cash or non-cash modes at the designated bank branch.

Advantages of Online Tax Filing

A lot of taxpayers prefer to file their taxes online because the process is faster and more convenient. Once the payment is made, you will receive a Challan Identification Number (CIN). This number can be used to track the payment status and to file your Income Tax Return (ITR).

Additional Resources

How to Pay Tax Due Investment Declarations to Increase Your Take Home Pay

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