Do you know how much estimated tax you should be paying?
Depending on your income activity:
Are you sure that what you’re doing now is compliant with IRS rules, without being too conservative?
Underpayment causes costly penalties, but overpayment reduces your current cash flow unnecessarily.
Do you know the different ways you can pay your estimated tax?
Federal estimated tax coupon | Through your withholdings prior to year-end with your W2 Brokerage accounts | Interest & Dividends | Capital Gains | Pension/retirement withholdings
If you answered ‘no’ to one or more of these questions, you may be at risk for penalties, or at risk of paying too much, too soon!