How to Pay Estimated Taxes
Paying estimated taxes is a crucial responsibility for self-employed individuals, freelancers, and those with income not subject to withholding taxes. Estimated taxes are typically paid quarterly to the IRS (Internal Revenue Service) and, in some cases, to state tax authorities to cover income tax and self-employment tax liabilities. Here's a guide on how to pay estimated taxes: In most cases, you must pay estimated tax if both of the following apply. 1. You expect to owe at least $1,000 in tax (for 2024), after subtracting your withholding and refundable credits. 2. You expect your withholding and refundable credits to be less than the…
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