AliciaP1
Expert Alumni

Get your taxes done using TurboTax

You may be reporting income that is not subject to withholding that results in more than $1,000 of tax.  If this income is not ongoing, you do not need to make estimated tax payments in 2023.  If you do expect this income to continue at or above the amount reported for 2022, you should make the estimated tax payments in order to avoid the underpayment penalty on next year's tax return.

 

Per the IRS:

Estimated tax is the method used to pay tax on income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.). In addition, if you do not elect voluntary withholding, you should make estimated tax payments on other taxable income, such as unemployment compensation and the taxable part of your social security benefits.

 

You can see Estimated Taxes for more information.

 

@Evapnw

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