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Federal estimated taxes are quarterly tax payments made to the IRS for income you received that wasn’t subject to federal tax withholding.
- If you receive significant non-wage income, such as from self-employment or investments, you will likely need to pay quarterly estimated taxes or run the risk of underpayment penalties in addition to a large year-end tax bill.
- If you’re at risk for an underpayment penalty next year, we'll automatically calculate your estimated tax payments and prepare 1040-ES vouchers that include the payment due date.
Sources: TurboTax FAQ
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