NEXT ESTIMATED TAX PAYMENT DUE 6/15

A recent IRS email reminds taxpayers about what they need to know about making 2022 estimated tax payments.  It included some quick reminders about what estimated taxes are, when they are due, and how they work:

By law, everyone must pay tax as they earn income. Generally taxpayers must pay at least 90 percent of their taxes throughout the year through withholding, estimated or additional tax payments, or a combination of all of them. If they don’t, they may owe an estimated tax penalty when they file. Some taxpayers earn income not subject to withholding. For small business owners and self-employed people, that usually means making quarterly estimated tax payments.
Here are some key things to help taxpayers determine if they need to make estimated tax payments:
•    Generally, taxpayers need to make estimated tax payments if they expect to owe $1,000 or more when they file their 2022 tax return, after adjusting for any withholding.
•    The IRS urges anyone in this situation to check their withholding using the Tax Withholding Estimator on IRS.gov. If the estimator suggests a change, the taxpayer can submit a new Form W-4  to their employer.
•    Aside from business owners and self-employed individuals, people who need to make estimated payments also include sole proprietors, partners and S corporation shareholders. It also often includes people involved in the sharing economy.
•    Aside from income tax, taxpayers can pay other taxes through estimated tax payments. This includes self-employment tax and the alternative minimum tax.
•    The remaining deadlines for paying 2022 quarterly estimated tax are: June 15, Sept. 15, and Jan. 17, 2023.
•    Taxpayers can check out these forms for details on how to figure their payments:
o    Form 1040-ES, Estimated Tax for Individuals 
o    Form 1120-W, Estimated Tax for Corporations
•    Taxpayers can visit IRS.gov to find options for paying estimated taxes. These include:
o    Direct Pay from a bank account.
o    Paying by credit or debit card or the Electronic Federal Tax Payment System.
o    Mailing a check or money order to the IRS.
o    Paying cash at a retail partner.
 

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John A. Cocklereece, Jr.

John Cocklereece concentrates his practice on property tax appeals, business law, tax controversies, and estate planning and administration.
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