The IRS is reminding all businesses, including self-employed and gig workers, to make estimated tax payments quarterly. Individuals and businesses are required to pay taxes as income is earned or received throughout the year, either through withholding or estimated tax payments. That’s why those who are self-employed or in the gig economy usually need to make estimated tax payments. Estimated tax is used to pay not only income tax, but other taxes such as self-employment tax and alternative minimum tax. If taxpayers don’t pay enough tax through withholding and estimated tax payments, they may be charged a penalty. Contact your Axley & Rode advisor for additional information or visit the
IRS webpage.
