For many people, taxes come due just once a year. But for others, it is necessary to make payments every quarter alongside the requisite filing due April 15.Known as quarterly estimated tax payments, these are “taxes paid to the IRS throughout the year on earnings that are not subject to federal tax withholding,” said NerdWallet. Failing to make quarterly estimated tax payments when you owe them can result in a penalty, which is why it is important to know whether this applies to you. Here are the common situations in which quarterly taxes are owed.People who do not have enough withheldThe general rule of thumb for owing quarterly estimated taxes is if “you’ll owe $1,000 or more in federal income taxes this year, even after accounting for your withholding and refundable credits,” said NerdWallet. You will also need to pay them if “your withholding and refundable credits will cover less than 90% of your tax liability for this year, or 100% of your liability last year, whichever is smaller.” That threshold increases to 110% for those with incomes over a certain amount.
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