Estimated Tax Payment

Should I pay/submit an estimated tax payment on the redemption of I-Bonds during the course of the year. Ie. I redeem I bonds now (March). And, then pay estimated tax on the interest for those I-bonds in the first quarter April 15th? OR Can I wait until the end of the year without a penalty? I know that for Treasuries like bills, bonds, notes... I have to pay estimated tax for interest payments due the next scheduled estimated tax payment date.

1199

Expert Alumni

Mar 13, 2025 5:13:06 AM

Yes, you need to pay the taxes on them on April 15th if you redeem them now in March. If you do not, and you have a tax due, you will have a penalty at the end of the year. The IRS is a pay as you go system. Regardless the source of the income, if it is taxable, you must pay on the 15th day of the month after the quarter ends.

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Estimated Tax Payment