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 IRS Publication 505 Tax Withholding and Estimated Tax 2022

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internal revenue service irs tax news irs reminds taxpayers to make final estimated tax payments for 2020. ir 2021-13 january 14 2021 washington taxpayers who paid too little tax during 2020 can still avoid a tax time bill and possible penalties by making a quarterly estimate estimated tax payment now directly to the internal revenue service so obviously if you have income that's not subject to withholdings for example if you're a w-2 employee then you will have withholdings and you'll be forced to basically pay your estimated taxes and your employer will take it directly out of the wages and that's why most of the time if you only have w-2 wages usually sufficient amount will be taken out so that you're going to get a small refund the point of that being to avoid penalties and interest whereas if you paid too little then you might be subject to penalties and interest because the irs wants to get paid during the year in which you earn the money n

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