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Why would I need to pay estimated taxes?

Estimated tax payments may be needed to be made if you:

  • Are self-employed with net income;
  • Expect to receive significant income from non-wage sources such as retirement accounts, rental income, stock sales, alimony, etc.; or
  • Expect to lose a significant deduction or credit. For example, if you had a large adoption credit last year that you will not have this year.
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