Do I Have To Pay Estimated Taxes?
Understanding Estimated Tax Payments The U.S. operates on a “pay as you go” tax system. This requires you to pay taxes throughout the year. You can do this through payroll withholding, by making estimated tax payments or both. Not paying the IRS enough taxes during the year triggers an estimated tax penalty. The IRS charges this non-deductible interest penalty on the amount you underpaid each quarter. The penalty rate equals… Read more