| “This year my estimated tax return is only $370 but my company withheld $5942 from my wages for Federal income tax and I earned $52000 this past year. Please advise if this sounds right”===>IT is hard to tell due to lack of yur personal tax related info;if you itemize deductions on Sch A/ the mount of adj to AGI, if you are both a contractor( I mean self employer) or an EE orhat kind of withholding method your ER used etc. In general, you can see, estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.Estimated tax is used to pay income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. If you do not pay enough through withholding or estimated tax payments, you may be charged a penalty. If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return. For example, if you are filing as a sole proprietor, partner, S corporation shareholder, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1K or more when you file your return.If you are filing as a corporation you generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return.So, I guess you can contact a tax pro inyour local area for more accurate info in detail for your state/fed returns.
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