The Week of May 5, 2019 is Small Business Week! Taxes must be paid as you earn or receive income during the year, either through withholding, estimated tax payments or a combination of both. A Paycheck Checkup using the IRS Withholding Calculator can help you see if you need to make an additional payment to avoid an unexpected tax bill or underpayment penalty when you file your tax return next year.
You may need to make estimated payments if you:
- have multiple jobs—especially if you don’t have each employer withhold taxes
- are self-employed or an independent contractor
- are a representative of a direct-sales or in-home-sales company
- participate in sharing economy activities where you are not working as an employee
- receive pension income
Visit the Steps to Take Now page to learn more.