Uncle Sam wants your tax money ... now. So, if you aren't sending the IRS enough money in your quarterly tax installments, you may need to pay an extra interest-rate penalty.
You can hold onto your cash longer if you qualify for any one of three IRS-approved "safe-harbor" methods of calculating your estimated tax payments.
Advice: Switch to the safe-harbor method that enables you to pay the least amount of estimated tax during the year. And don't feel the need to wait until year-end to switch. Nothing in the tax law says you must use the safe-harbor method that's worked best for you in the past, or even the method you used earlier this year.
Choose one of 3 methods to calculate estimated tax
You're required to pay your annual income tax in quarterly installments or through payroll tax withholding (or a combination of both).
The quarterly due dates for the tax payments are April 15, June 15, Sep...(register to read more)