Taxes are due to the government throughout the year. If you are an employee, this is handled by your employer who withholds and remits income tax for both federal and states on your behalf. If you are self-employed, you have to pay estimated tax payments quarterly. The IRS has safe harbor rules based on previous year’s tax to avoid penalties. If your adjusted gross income (AGI) is less than or equal to $150,000, you have to pay in 100% of prior year’s tax on a quarterly basis. If your AGI is above $150,000, you have to pay in 110% quarterly.

If you don’t have to pay estimated taxes, the balance of your tax is due on the due date of the return, which is normally April 15th of the next year.