What is an Estimated Tax?
Estimated taxes are amounts that you pay in quarterly installments throughout the year to cover your self-employment taxes and income taxes. The IRS requires you to make estimated tax payments if you expect to owe taxes of $1,000 or more when you file your return. The due dates for making estimated tax payments are April 15th, June 15th, September 15th, and January 15th of the following year. This means that for 2023, the last estimated tax payment is due on January 15, 2023.
What is the IRS Q4 Estimated Tax Due Date for 2023?
The IRS Q4 estimated tax due date for 2023 is January 15, 2023. This is the last estimated tax payment you will need to make for the 2023 tax year. This due date applies to individuals, corporations, and other entities, including trusts and estates. If you do not make this payment by the due date, you may be charged a penalty.
What is the Penalty for Late Payment of Estimated Taxes?
If you do not make your estimated tax payment by the due date of January 15, 2023, you may be subject to a penalty. The penalty is generally based on the amount of unpaid taxes and the length of time the taxes are unpaid. The penalty can range from 1% up to 25% of the unpaid taxes. Additionally, if you fail to pay the estimated taxes by the due date, the IRS may impose interest on the unpaid taxes.
How to Make an Estimated Tax Payment?
The IRS provides several ways to make estimated tax payments. You can make your payment online using IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit or debit card. You can also make your payment by mail using Form 1040-ES, Estimated Tax for Individuals. This form includes a payment voucher that you can use to make your payment. Lastly, you can make your payment in person at a local IRS office.
What are the Requirements for Making an Estimated Tax Payment?
When making an estimated tax payment, you will need to provide your Social Security number, estimated tax period, and the payment amount. You will also need to indicate whether the payment is for an individual, corporation, or other entity. Additionally, you will need to provide your bank account information if you are paying by electronic funds transfer.
When to Adjust Your Estimated Tax Payments?
You may need to adjust your estimated tax payments if there are any changes to your income, deductions, or credits. For example, if you receive a large bonus during the year, you may need to make an additional estimated tax payment to account for the additional income. Similarly, if you make a large charitable contribution or have a change in your tax deductions, you may need to adjust your estimated tax payments.
What Happens if I Owe More than My Estimated Tax Payment?
If you owe more than your estimated tax payment when you file your tax return, you will need to pay the difference plus any applicable penalties and interest. The IRS will generally give you at least 21 days to pay the balance due. If you are unable to pay the amount due in full, you may qualify for a payment plan with the IRS.
Conclusion
The IRS Q4 estimated tax due date for 2023 is January 15, 2023. If you are required to make estimated tax payments and you do not make the payment by the due date, you may be subject to penalties and interest. You can make estimated tax payments online, by mail, or in person. Additionally, you should adjust your estimated tax payments throughout the year if your income, deductions, or credits change. Lastly, if you owe more than your estimated tax payment when you file your return, you may need to pay the difference plus any applicable penalties and interest.
