The IRS has verified there is a means to prevent a “surprise tax bill” for failing to pay sufficient taxes in 2022, as well as avoid further penalties.
The deadline for tax payments for the fourth quarter of 2022 is January 17, 2023. This applies to income from investments, the gig economy, and self-employment, among other sources.
Simplest Way To Pay Your Tax
Those who do not withhold taxes from their income are normally required to make four payments each year. If they fail to do so, they may incur interest charges and a late-payment penalty of up to 25% of their outstanding debt every month.
The IRS has notified taxpayers that Direct Pay is the simplest and quickest method for making online tax payments, with taxpayers able to schedule their selections before the January 17 payment deadline.
You can also make payments using your online IRS account, with the ability to also see your payment history. There are many more alternatives accessible on the IRS website.
Taxpayers who have paid more than 90% of their 2022 taxes by the deadline of January 17, or 100% of their 2021 tax bill if their adjusted gross income is less than $150,000, are eligible for a refund.
Experts advise individuals to set aside 20% of their income for federal taxes, in addition to a lesser amount for state taxes, based on their place of residence.
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When are 2023 taxes due?
Since April 15 comes on a Saturday and April 17 is Emancipation Day, a holiday honored in Washington, D.C., taxes are due on April 18, 2023.
You may get a head start on filing your tax return by collecting important documents, such as your W-2 and 1099 forms. Some third-party tax services may allow you to submit your taxes early, but they will remain in the system until the IRS begins accepting returns for processing.
Your employer must mail you your W-2 by January 31. Additionally, most 1099 forms are due by the end of January.
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