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hi Im mark pre-tax com since most people are paid by salary their employer withholds income tax but for tax payers who are either self-employed or have substantial non wage income theres usually no automatic withholding method examples of non wage income include interest dividends alimony unemployment compensation in the taxable part of the Social Security benefits for these taxpayers it will be necessary to pay quarterly estimated tax payments youll generally need to make estimated quarterly tax payments if you owe taxes of $1,000 or more after subtracting your tax withholding paying 100 percent of the taxes you owed in the previous year is referred to as the safe harbor rule even if your income grew this year you will avoid penalties if you match the payments that you owed in the previous year if your income is more than $150,000 per year then youre required to pay 110 percent of what you paid in taxes last year if you live in a state that charges income tax you may also need to
