@Guangle
Taxes are pay-as-you-go. This means that you need to pay most of your tax during the year, as you receive your income, rather than paying at the end of the year.
Yes, you should pay estimated quarterly taxes based on what you earned for the quarter.
For federal income tax purposes:
You may owe the penalty for 2020 if the total of your withholding and timely estimated tax payments didn't equal at least the smaller of:
- 90% of your 2020 tax, or
- 100% of your 2019 tax. Your 2019 tax return must cover a 12-month period.
Tip: To reduce or possibly even eliminate your underpayment penalty, search for annualizing your tax (use this exact phrase) inside TurboTax. This will take you to the underpayment penalty section and we'll take you through the steps to possibly reduce your underpayment penalty. (If you don’t see Jump to annualizing your tax in the search results, make sure you’re in your return and not on the Tax Home page.).
[Edited 3-18-2021|10:20 AM PST]
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