why do i have to pay every year in state taxes
Generally, if you owe more than $1,000 at the end of the year, the IRS will penalize. That means that if you expect that you will owe more than $1,000 in taxes on your self-employment income, you should pay quarterly estimated taxes to avoid the penalty.Note, too, that the IRS keeps track of when you pay, and when you should have paid.alculate Your Estimated Taxes. When you pay your quarterly estimated taxes, you are supposed to pay for the money you earned each quarter. So, when you make your quarterly payment on April 15, you are paying on the income you had from January 1 to March 31 of that year.