The U.S. system is “pay as you go.” If you expect to owe at least $1,000 when you file (after subtracting your withholding and refundable credits), you generally need to make estimated tax payments during the year unless your withholding covers enough. Otherwise, an underpayment penalty can apply. Land O' Lakes CPA | Lutz Accounting | Odessa CPA | Tax Preparation Wesley Chapel This is the IRS’s rule for individuals under the estimated tax law and penalty rules Estimated taxes