The rule is that you must pay your taxes as you go.

The rule is that you must pay your taxes as you go. Do this by taking last year's income and adjust according to anticipated changes. Instructions for the correct percentage for a specific tax year. September 30, and on or before January 31 of the next year. You need to come up with a good estimate of the income and deductions you will report on your federal tax return next year. Partnership Return of Income, to report income and expenses. You can avoid penalties you would otherwise incur for underpaying your taxes. Subtract your expected deductions and exemptions to obtain your expected taxable income. Your Social Security number should be on everything you send to the IRS.

Through withholding, you pay your income taxes as you go. Self-employment Social Security taxes are the most common additional taxes. Determine the smaller of 100 percent of your tax for the tax year before last or 90 percent of your tax for last year. Now, I am a wage earner and my employer withholds taxes.