If you didn't pay for certain quarters this year, there are a few options.
How Heard calculates your quarterly estimate
Heard calculates your quarterly estimate using your business income, W-2 income, other income sources, and withholdings. The calculation includes self-employment tax, QBI deductions, and any payments you've already made.
If you didn't pay prior quarters
Unpaid prior quarters get factored into your next quarterly estimate. When you update your quarterly tax checklist to show you didn't pay (or underpaid), Heard accounts for that in the following quarter's calculation.
For Q4, we ask that you share all payments actually paid to the IRS/ state taxing authorities with us. This will help us calculate a final estimated payment for you to catch up for the year. This is typically more accurate, as we’ll have almost a full year of income to review for your business.
About quarterly tax penalties
Lastly, a note from the IRS on tax liability and penalty fees:
"Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller."
What if I can't afford to pay what I owe?
If you can't pay now, you'll still owe it at tax time, along with penalties and interest. The best move is to pay what you can before year-end to reduce penalty exposure.