Estimated tax payments are crucial for those with significant income and not ax withholdings, like self-employed individuals and those with income from dividends, interest, capital gains, rents, and royalties. For W-2 employees, under-withholding can lead to a year-end tax bill.

The IRS requires quarterly payments based on expected tax liability. Regular payments prevent a huge year-end surprise and avoid penalties.

Have you missed a payment? Don’t panic! Pay it ASAP online or by mail with the quarterly voucher. You can also adjust your withholding on wages or retirement income. The IRS may waive penalties if you: Retired or become disabled recently, Paid most taxes early in the year, Had uneven income thought the year, Submit form 2210 to request a waiver. Keep your tax obligations on track to avoid issues!