How Do Quarterly Estimated Taxes Work?

How do quarterly estimated taxes work?

If you're self-employed and taxes aren't withheld from the income you receive, or if you get significant income from alimony, dividends, interest, rental property or investments, making quarterly estimated tax payments can help you avoid paying a big tax bill or an underpayment penalty in April.

Find out more about how quarterly estimated taxes work in this helpful TurboTax Support video.

Estimated taxes are payments you make each quarter that go toward your final tax bill.

If taxes aren’t withheld from the income you receive, making quarterly estimated tax payments can help you avoid paying a big tax bill or an underpayment penalty.

So, if you’re self-employed or if you get significant income from alimony, dividends, business earnings, interest, or from investments such as stocks, collectibles, or rental property, you may want to consider making estimated tax payments throughout the year.

When you prepare your return in TurboTax, we’ll automatically calculate your estimated tax payments for the following year and generate the payment vouchers for you.

The vouchers will have the payment due dates so you’ll know exactly when you need to mail your payment.

Or you can make electronic payments directly on the IRS website.

For more answers to your questions, visit TurboTax.com/support