Quarterly Taxes

Do you have to pay quarterly taxes or just on tax time?

Okay, let me see if I can explain this right…

If you have a regular job where taxes are withheld, and this is a side gig for you, your first time through you can wait til you file to pay your taxes on your business. If you do this and end up owing too much, IRS will let you know that you need to make estimated payments. However, if you only have this work, you may want to try to estimate what your tax liability may be and start making quarterly deposits to avoid any interest and penalties.

Hope this helps.

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Why would some one have a penalty?

For underpaying taxes - check the IRS website for the publications that apply to your business.

This from IRS

“If you don’t pay enough tax through withholding and estimated tax payments, you may be charged a penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.”

is that paid at the end?withholding

Read the IRS info I posted - along with my previous post…that may help you