09/08/23 Writing sample:
FAQ: Quarterly Estimated Tax Payments 2023
Anyone expecting to owe more than $1,000 in taxes by the end of the tax year should pay quarterly income taxes, such as freelancers or contract employees who do not withhold tax from their income. Here is a general overview of what you need to know about estimated tax payments.
Should I file quarterly estimated tax payments?
Aside from anyone expecting to owe $1,000 or more in taxes for the current tax year, you may have to make payments if your withholding and refundable credits are expected to be less than (applies to the smaller of the two):
- 90% of the tax on your current year’s tax return
or
- 100% of the tax shown on your prior year’s tax return (must cover all 12 months).
Special rules apply to:
- Farmers and fishermen
- Certain household employers
- Certain higher-income taxpayers
- Nonresident aliens
When are estimated tax payments due?
Since they are quarterly tax payments, there are four payment dates for every tax year:
- For January 1 – March 31, payments are due April 15th.
- For April 1 – May 31, payments are due June 15th.
- For June 1 – August 31, payments are due September 15th.
- For September 1 – December 31, payments are due January 15th
You can skip the January 15 estimated tax payment if you file your return and pay all the tax due by February 1. You also are allowed to make bi-weekly, weekly, or monthly payments as long as they cover the full amount due at the end of the quarter.
How can I track my payments?
After starting estimated tax payments, keep a record of your payment dates and the amount for each period to make preparing your income tax return easier.
Also, if you pay estimated taxes, you can claim credit for them when filing your tax return.
How do I report estimated tax payments when filing my tax return?
Report all estimated tax payments on Form 1040 (line 26), including any overpayment you elected to credit from the prior year’s tax return.
Should I pay self-employment taxes annually or quarterly?
If you need to pay estimated income and self-employment taxes, you can do so on a quarterly basis or pay in full by the first quarterly payment (April 15th).
Special rules apply to farmers and fishermen, as they make one required payment or pay in full with their tax return when filed by a certain date.
Where can I find more information about estimated tax payments?
Visit the IRS website or learn more about calculating your Estimated Tax Payments from Turbo Tax.
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