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West Virginia
InstructIons for M akIng EstIMatEd t ax P ayMEnts
What is estimated tax? Estimated tax is the income tax you Commissioner at six month intervals, but cannot be less
expect to owe, less the amount of any income tax credits than eight percent (8%).
you expect to receive. Income tax withheld from any of
your income is treated as an estimated tax payment for the What are the exceptions to the penalty? Under certain
purpose of determining your estimated tax. Therefore, your criteria, you may not be subject to the penalty for
estimated tax is your expected income tax for the year less underpayment of estimated tax. The exceptions are:
the sum of the following credits which you expect to have, 1. If your estimated tax liability is less than $600; in
such as: Family Tax Credit, Credit for Income Tax Paid other words, if your estimated tax reduced by your tax
to Another State, or Senior Citizens Credit for Property withheld is less than $600, no penalty will be imposed.
Taxes Paid. Refer to Publication TSD-110 for additional tax
credits. This Publication is available on our web site www. 2. If you prepay, through tax withholding and estimated
wvtax.gov or by calling our Taxpayer Services Division at tax payments, one hundred percent of the tax shown
(304) 558-3333 or 1-800-982-8297 on normal business days on your return for the preceding year. This exception is
between 8:00 a.m. and 5:00 p.m. determined on an installment by installment basis. For
example, a taxpayer must prepay twenty-five percent
Who must make estimated tax payments? You must make (100% times one-fourth) of the prior year tax by the first
quarterly estimated tax payments if your estimated tax quarterly installment due date to meet the exception for
liability (your estimated tax reduced by any state tax withheld that quarter; making a lump sum payment later in the
from your income) is at least $600, unless that liability is year will not eliminate the penalty due for that quarter.
less than ten percent of your estimated tax. Taxpayers who
are required to make estimated tax payments but wait until 3. If you prepay, through tax withholding and estimated
late in the tax year to make a lump sum payment will be tax payments, the portion of the tax which would be
penalized for not making the earlier required payments. due if you annualized the income earned so far this year.
This exception is also determined on an installment by
NOTE: If your estimated tax liability is more than $600 and installment basis. Many taxpayers who have varying
your primary income source is wage and salary income, you levels of income throughout the year will qualify for this
may want to adjust your withholding. File a new Form IT- exception for some quarters in which their income is
104 (Employee Withholding Exemption Certificate) with low.
your employer to adjust the state tax withheld from your
income. 4. If you had no West Virginia tax liability for the preceding
year, no penalty will be imposed if (a) the preceding tax
How much estimated tax must I pay? Use the Estimated Tax year was a twelve month period, (b) you were a citizen or
Worksheet on page 3 to calculate your estimated tax liability. resident of the United States throughout the preceding
The amount shown on line 11 is the minimum amount tax year, and (c) your current year liability is less than
required to be paid as estimated tax payments throughout $5,000.
the year.
When are my estimated payments due? Current year
What if I don’t pay enough estimated tax? If you have not quarterly installments are typically due April 15, June 15,
prepaid at least ninety percent (90%) of your estimated tax and September 15 with the fourth quarter due January 15 of
by the appropriate due dates, a penalty will be added to your the following year. If the due date falls on Saturday, Sunday,
tax liability unless you qualify for one of the exceptions. or a legal holiday, the payment is due the next business day.
The penalty is calculated using Form IT-210 (Underpayment A payment placed in the mail, postmarked on or before the
of Estimated Tax by Individuals) and is equal to the amount due date, is considered timely paid.
determined by applying the current interest rate for tax What is the minimum amount required to be paid with
underpayments to the underpayment for the period of each voucher? The minimum payment required with each
time the underpayment exists. The annual interest rate voucher is determined by dividing the amount remaining
for tax underpayments is determined by the State Tax
IT-140 ESI irginia State Tax Department Page 1
Rev. 3/13
