The IRS tax system is pay as you go. Essentially this means that when you make money they want the tax dollars on that money within the quarter. You can wait until you file your tax return but a penalty for late payment can and in most circumstances will occur.
Here are the exceptions to the penalty (Form 2210 Instructions:( Who Must Pay the Underpayment Penalty
In general, you may owe the penalty for 2022 if the total of your withholding and timely estimated tax payments didn't equal at least the smaller of:
- 90% of your 2022 tax, or
- 100% of your 2021 tax. Your 2021 tax return must cover a 12-month period.
Higher income taxpayers: If your adjusted gross income (AGI) for 2021 was more than $150,000 ($75,000 if your 2021 filing status was married filing separately), substitute 110% for 100% in (2) above.
There is a annualization method that you can try if you received the EE bond interest late in the year, otherwise it may not be beneficial.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
