What is estimated tax/estimated tax payment?

Understanding estimated tax payments.

Updated over a week ago

This article was updated for Tax Year 2023, last edited on December 20th, 2023.

Estimated tax payments are payments made on income that was not subject to income tax withholding. The IRS requires that taxes be paid as you earn or receive income. Failure to pay this on time may result in penalties and you’ll need to mail in or make a payment directly to the IRS online.

On the other hand, withholding is withheld automatically from your income.

Estimated tax payments and withholding exist on both the federal and state level. Click here to reach out to your state for more information about your state specific payments and withholding.

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