Tax Day: Not Just for Procrastinators, but for Estimated Tax Payers Too!
Hey, folks! As you’re probably aware, Tax Day (April 18) is fast approaching. But did you know it’s not just for last-minute filers? That’s right; it’s also the deadline for the first quarter estimated tax payments for the 2023 tax year. Let’s take a look at who this affects and how to make these payments, without getting lost in the tax jargon.
Estimated Tax Payments: Who Needs to Pay?
Think of estimated tax payments as a pay-as-you-go plan for folks who don’t have taxes withheld from their paychecks or other income sources. This includes self-employed individuals, retirees, investors, businesses, corporations, and even employees who don’t have enough taxes withheld by their employers. Basically, if you’ve got income that isn’t subject to withholding, it’s time to pay up.
Exceptions and Special Circumstances
Not everyone is subject to the penalty for not making estimated tax payments. Some lucky groups, such as farmers, fishers, recent retirees, and disaster victims, have special rules and exceptions. And if you’ve been affected by recent disasters in California, Alabama, or Georgia, for instance, you’ve got until October 16, 2023, to make your 2023 estimated tax payments.
Paying Estimated Taxes: It’s Easier Than You Think
No need to stress about making estimated tax payments. The IRS has a handy Form 1040-ES with instructions to help you figure out your estimated taxes. Plus, you can make payments electronically at IRS.gov/payments.
For a seamless payment experience, use the IRS online account. There, you’ll see your payment history, pending payments, and other useful tax info. You can also use IRS Direct Pay, Debit Card, Credit Card, Digital Wallet, or the Treasury Department’s Electronic Federal Tax Payment System (EFTPS) to make payments.
If you prefer the old-fashioned way, you can write a check to the “United States Treasury.” Just be sure to get it in the mail in time!
Extra Resources for the Extra Curious
Still not sure if you need to make estimated tax payments? Check out Publication 505, Tax Withholding and Estimated Tax, for more details, worksheets, and examples. It’s especially helpful if you have dividend or capital gain income, owe alternative minimum tax or self-employment tax, or have other special situations.
To make sure you’re withholding the right amount from your paycheck, use the IRS Tax Withholding Estimator tool. It’ll help you avoid any unpleasant surprises at tax time.
Tax Help Around the Clock
If you need more assistance, IRS.gov has got you covered 24/7 with online tools like the Interactive Tax Assistant, Tax Topics, and Frequently Asked Questions. And don’t worry if English isn’t your first language – the IRS now offers resources in 20 other languages. Just visit their “We Speak Your Language” page to get started.
So, mark your calendars, estimated tax payers. April 18 isn’t just for last-minute filers; it’s for you too. Get those payments in on time, and you’ll be smooth sailing into the next tax season!
***Disclaimer: This communication is not intended as tax advice, and no tax accountant -client relationship results**