Does estimated taxes refer to the tax payments we made in 2024?

[SabrinaD2]

Yes, estimated taxes refer to the tax payments you made throughout 2024. These payments are typically made quarterly and are used to cover income that isn't subject to withholding, such as self-employment income, interest, dividends, and rental income.

Estimated tax payments help ensure you don't owe a large amount when you file your tax return and can help avoid penalties for underpayment

Additionally, estimated taxes can also refer to the payments you will make in 2025 to cover your income for that year

For more detailed information, you can check out these links:

1. IRS Estimated Taxes Guide