Take Credit for Estimated Income Tax Payments

Colorado income tax filers are urged to keep good records of income tax pre-payments, commonly referred to as estimated payments on tax forms. The most common reason for making income tax pre-payments is: the individual is self-employed. Employers withhold income tax from their employee’s pay and report and pay the tax on behalf of the employee. When the employee files income tax after the end of the year, the employee takes credit for withholding taxes paid by reporting what is on W-2s. Wages typically have withholding, but earnings from self-employment, interest, dividends, rents, etc. would be subject to estimated tax.

Taxpayers who are self-employed or must pay estimated income tax on their own should make estimated tax payments. Colorado individual estimated income tax is due quarterly to the Department of Revenue on April 15, June 15, September 15 and January 15 each year.

Whether you pay through Revenue Online or by check with the 104EP voucher, make sure your payment is credited to your Colorado income tax account. You can keep track of your payments by signing up for account access in Revenue Online.

When it’s time to file your income tax return, be sure you are not under-claiming or over-claiming your estimated tax payments. If your records do not match the department’s records, this will cause delays in processing your income tax filing and any refund you may be expecting.