Taxpayers should find out if they need to make estimated or additional tax payments
The U.S. tax system operates on a pay-as-you-go basis. This means that taxpayers need to pay most of their tax during the year, as the income is earned or received. Taxpayers must generally pay at least 90 percent of their taxes throughout the year through withholding, estimated or additional tax payments or a combination of the two. If they don’t, they may owe an estimated tax penalty when they file.
Taxpayers can pay their taxes throughout the year anytime. They must select the tax year and tax type or form when paying electronically. Filers paying by check should make it out to the “United States Treasury” and indicate the tax year and type of taxes they are paying.
Taxpayers who pay taxes through a combination of withholding and estimated tax payments should do a Paycheck Checkup. They can do a checkup using the Withholding Calculator on IRS.gov. Doing so now can help the taxpayer avoid an unexpected tax bill and possibly a penalty when the taxpayer’s 2018 tax return is filed next year.
Here are some examples of people who may need to make estimated tax payments:
Individuals – including sole proprietors, partners and S corporation shareholders – may need to pay quarterly installments of estimated tax if:
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Shared from: IRS.gov