Getting the car inspected. And, of course, filing your tax returns. Most of us confront the last chore in the early spring, then forget about it for a year. But if you have extra income that's not subject to withholding, you may be required to pay your taxes every quarter, based on an estimate of what you owe. Anyone who receives income not subject to withholding.
Some states also require residents to pay estimated taxes.
That's easy if most of your income comes from a job in which your employer withholds taxes from every paycheck. But if you have big chunks of money coming from other sources, you can't send the IRS a check in April to cover the prior year's taxes. Even if you overpay and have a refund coming, the IRS may penalize you for failing to pay your estimated taxes on time, Schafer says. People who run their own businesses are all too familiar with estimated taxes. IRS You sell some stocks or mutual funds.