Question

Estimating Taxes

Forum|Forum|2 years ago
August 30, 2023
1 reply
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Are you penalized for not making the same amount of estimated payment every quarter? For example, If I'm hired as a W2 employee for the last two months of the year, they withhold taxes for me, I wouldn't owe any money for those two months. My estimates would've been based on income from June-December. I would have a lower payment for Q4.

Ask the Experts - Self-Employed - Aug 2023

JBedford

Thanks for your question, @Laura8624 ! It is generally considered a best practice to make equal payments, but you will not necessarily be penalized for it if your income is earned unevenly. Also, withholding counts as a payment just the same as estimated payments are, which is why you generally don't have to make any estimated payments at all if all of your income has withholding.

Hope this helps, please let me know if not!

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