Yes, if you are self-employed or operate a business that does not withhold taxes from your income, you are generally required to make quarterly estimated tax payments to the IRS.
This includes income from freelance work, rental properties, dividends, and business profits. The payments are due in April, June, September, and January of the following year.
Failing to make estimated payments, or underpaying, can result in penalties and interest. To calculate your estimated payments, you can use IRS Form 1040-ES or consult with a tax advisor. Many states also require quarterly estimated tax payments in addition to federal payments.
Making timely estimated tax payments helps you avoid surprises at tax time and ensures you remain in good standing with the IRS.
