If taxes aren’t withheld from the income you receive—making quarterly estimated tax payments can help you avoid paying a big tax bill or an underpayment penalty in April.
You’re self-employed.
When you’re self-employed—federal, state, and Social Security taxes aren’t taken out of the income you receive.
Instead of paying the entire amount you owe in April, setting up estimated tax payments gives you the flexibility to make four smaller payments during the year.
You're not required to make estimated tax payments; we're just suggesting it based on the info in your return. If you feel they're not needed for next year's taxes, you can shred them. Or you can pay less than the quarterly estimate and make up the rest later.
