Should You Be Paying Quarterly Estimated Taxes?
By Tina Orem @nerdwallet
April 15 isn’t the only day the IRS expects to receive money. America runs a pay-as-you-earn tax system, which means that as soon as you get paid, the IRS wants its cut. And depending on the sort of work you do or how you’re paid, you might need to settle your tax bill every quarter via estimated tax payments.
Who needs to make quarterly tax payments?
For most people, pay-as-you-earn happens through payroll taxes — that bite Uncle Sam takes out of your regular paycheck. But if you don’t have taxes withheld from your pay, or you already know you’ll have a big bill when you file your tax return next April, you probably need to make quarterly estimated tax payments.
The IRS says you need to make quarterly estimated tax payments if you expect:
Published with permission from NerdWallet