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IT-140 ESI
Estimated Tax Payments
Instructions
This publication provides general information and is not meant to be a substitute for tax laws or regulations.
What is estimated tax?
Estimated tax is the income tax you expect to owe, less the amount of any income tax credits you expect to receive. Income tax
withheld from any of your income is treated as an estimated tax payment for the purpose of determining your estimated tax.
Therefore, your estimated tax is your expected income tax for the year less the sum of the following credits which you expect to
have, such as: Family Tax Credit, Credit for Income Tax Paid to Another State, or Senior Citizens Credit for Property Taxes Paid.
Refer to Publication TSD-110 for additional tax credits. This Publication is can be found Online at tax.wv.gov
Who must make estimated tax payments?
You must make quarterly estimated tax payments if your estimated tax liability (your estimated tax reduced by any state tax
withheld from your income) is at least $600, unless that liability is less than ten percent of your estimated tax. Taxpayers who
are required to make estimated tax payments but wait until late in the tax year to make a lump sum payment will be penalized
for not making the earlier required payments. NOTE: If your estimated tax liability is more than $600 and your primary income
source is wage and salary income, you may want to adjust your withholding. File a new Form IT104 (Employee Withholding
Exemption Certificate) with your employer to adjust the state tax withheld from your income.
How much estimated tax must I pay?
Use the Estimated Tax Worksheet to calculate your estimated tax liability. The amount shown on line 11 is the minimum amount
required to be paid as estimated tax payments throughout the year.
What if I don’t pay enough estimated tax?
If you have not prepaid at least ninety percent (90%) of your estimated tax by the appropriate due dates, a penalty will be added
to your tax liability unless you qualify for one of the exceptions.
The West Virginia Tax Division will calculate the penalty (underpayment of estimated tax) for you. You will receive a notice for
the amount of penalty. The annual interest rate for tax underpayments is determined by the State Tax Commissioner at six month
intervals, but cannot be less than eight percent (8%).
What are the exceptions to the penalty?
Under certain criteria, you may not be subject to the penalty for underpayment of estimated tax. The exceptions are:
1. If your estimated tax liability is less than $600; in other words, if your estimated tax reduced by your tax withheld is less than
$600, no penalty will be imposed.
2. If you prepay, through tax withholding and estimated tax payments, one hundred percent of the tax shown on your return
for the preceding year. This exception is determined on an installment by installment basis. For example, a taxpayer must
prepay twenty-five percent (100% times one-fourth) of the prior year tax by the first quarterly installment due date to meet
the exception for that quarter; making a lump sum payment later in the year will not eliminate the penalty due for that quarter.
3. If you prepay, through tax withholding and estimated tax payments, the portion of the tax which would be due if you
annualized the income earned so far this year. This exception is also determined on an installment by installment basis.
Many taxpayers who have varying levels of income throughout the year will qualify for this exception for some quarters in
which their income is low.
4. If you had no West Virginia tax liability for the preceding year, no penalty will be imposed if (a) the preceding tax year was a
twelve month period, (b) you were a citizen or resident of the United States throughout the preceding tax year, and (c) your
current year liability is less than $5,000.
When are my estimated payments due?
Current year quarterly installments are typically due April 15, June 15, and September 15 with the fourth quarter due January
15 of the following year. If the due date falls on Saturday, Sunday, or a legal holiday, the payment is due the next business day.
A payment placed in the mail, postmarked on or before the due date, is considered timely paid.
What is the minimum amount required to be paid with each voucher?
The minimum payment required with each voucher is determined by dividing the amount remaining to be paid by the number of
payments yet to be made. You are permitted to prepay the remaining balance at any time.
IT-140ESI Estimated Tax Payments Instructions Page 1 of 4 Sept 2023 | West Virginia Tax Division
