tax payment

Your taxes are estimated and withheld periodically from your pay as you earn money throughout the year. At tax time (usually April 15th) you “true up” with the IRS when you file your return and calculate your total taxes owed for the past year. If you withheld less taxes than you owe in total, you owe the difference and send a tax payment to the IRS when you file your taxes. For example, if you withheld $5,000 during the year and your tax return says your total taxes owed for the year was $5,500 then you must make a $500 payment to the IRS when you file your taxes.