Topic: estimated-taxes

Quarterly estimated taxes: who owes them, and how the safe harbor works

• The US tax system is pay-as-you-go, and income with no tax withheld, from freelancing, dividends, capital gains or a side business, can leave you owing the IRS four times a year, not just in April.
• Miss the payments and a penalty applies even if you are later due a refund.
• The safe-harbor rule is how you avoid it.