When Are Estimated Taxes Due 2023
Understanding Estimated Tax Deadlines for 2023
As a self-employed individual or business owner, it's important to understand your estimated tax obligations and deadlines. Failing to make estimated tax payments can result in penalties and interest charges from the IRS. In this article, we will discuss when estimated taxes are due in 2023 and what you need to know to stay on top of your tax obligations.When Are Estimated Taxes Due?
April 18, 2023
June 15, 2023
September 15, 2023
January 16, 2024
It's important to note that even if you file an extension for your tax return, you still need to make estimated tax payments by the original due dates to avoid penalties and interest charges.How Do You Calculate Estimated Taxes?To calculate your estimated tax payments, you'll need to estimate your income, deductions, and credits for the year. You can use Form 1040-ES to help with this calculation. The form includes a worksheet to help you estimate your total taxable income, deductions, and credits.Once you have estimated your tax liability, you'll need to divide it by four to determine your quarterly estimated tax payments. If your income fluctuates throughout the year, you may need to adjust your estimated tax payments accordingly.
Q: Who needs to make estimated tax payments?
A: Self-employed individuals, business owners, and anyone who receives income that is not subject to withholding, such as rental income or investment income, may need to make estimated tax payments.
Q: Can I skip a quarterly payment if my income is lower than expected?
A: No, you should still make quarterly payments based on your estimated tax liability. However, if you overpay during one quarter, you can apply the excess to future payments or request a refund on your tax return.
Q: What happens if I don't make estimated tax payments?
A: If you don't make estimated tax payments, you may be subject to penalties and interest charges from the IRS. The penalty rate is currently 3% per year, calculated on a quarterly basis.
Q: Can I pay my estimated taxes electronically?
A: Yes, you can make electronic payments through the Electronic Federal Tax Payment System (EFTPS) or by credit card.
Q: Are there any special rules or exceptions for certain taxpayers?
A: Yes, farmers and fishermen may have different rules and deadlines for making estimated tax payments. In addition, members of the military and taxpayers living outside the United States may also have different requirements.