![]() You may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rents, and royalties. People who are in business for themselves will generally have to pay their tax this way. If you don’t pay your tax through withholding, or don’t pay enough tax that way, you might have to pay estimated tax. The amount withheld is paid to the IRS in your name.Įstimated tax. ![]() In addition, tax may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. If you are an employee, your employer probably withholds income tax from your pay.
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