Quarterly estimated tax payments
There’s also an alternative to withholding, namely quarterly estimated tax payments. But who should really opt for estimated quarterly tax payments? According to the IRS, those who aren’t having enough withheld should make estimated quarterly tax payments.
For instance, if you think you’ll actually owe over $1,000 in federal income taxes this year, quarterly estimated tax payments should be a smart move. The self-employed like freelancers and independent contractors should also opt for quarterly estimated tax payments because there’s virtually no tax automatically withheld on their income.
And if you think that making payments more often will benefit you, go for it; no one’s stopping you.
