Q&A of the Week July 21, 2021

Answer:

Taxpayers may need to make estimated tax payments if any of the following applies to their situation:

• Not enough income tax is withheld from their salary or pension.

• Their income includes interest, dividends, alimony, self-employment income, capital gains, prizes, and/or rewards.

• They are self-employed.

Taxpayers can use the IRS Tax Withholding Calculator to determine if they are having too much or too little tax withheld. Changes to withholding are made by submitting IRS Form W-4.

Find out more about estimated tax payments:

https://www.irs.gov/newsroom/heres-how-taxpayers-can-pay-the-right-amount-of-tax-throughout-the-year