For most Americans, getting square with the tax man happens once a year. But for about 14 percent of Americans, the tax man needs to be paid four times a year —Jan. 15, April 15, June 15 and Sept. 15.
You probably don’t need to make so-called estimated tax payments if you are an employee of a company and have taxes withheld from your paycheck. Estimated tax payments apply mainly to those people who work for one or more companies on a freelance or contract basis or who are self-employed. According to the IRS, you must make estimated tax payments for the current tax year if both of the following apply:
Sound complicated? If you are self-employed or are doing contract or freelance work, it can be difficult to keep on top of your tax obligations. That’s why it’s always a good idea when you start doing freelance or contract work to meet with a tax professional who can help you stay on top of your tax obligations.