Estimated Tax Payment

[darkglass]

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.  

[Vanessa A]

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.