If you’ve launched into self-employment, congratulations on being your own boss! Whether you’re working as a contractor or making money in the fast-growing sharing economy, don’t forget that you may need to pay quarterly estimated taxes. The next quarterly estimated tax payment due date is coming up on January 17, 2023!
You are ready? If not, don’t worry, we’ve got the information you need to know!
Who is subject to estimated tax?
In the United States, we have a “pay as you go” tax system. That means the government expects to receive most of your taxes throughout the year. Because of this, employees automatically have a certain amount of tax withheld from their paychecks.
On the other hand, if you’re self-employed as a freelancer, contractor, or home-based entrepreneur, you most likely won’t have taxes withheld from your pay for the entire year and are instead subject to quarterly estimated taxes. In general, you are expected to pay estimated taxes if you expect to owe $1,000 or more annually in taxes.
For your 2022 taxes, the next Quarterly Estimated Tax Deadline Approaching January 17, 2023!
However, if you miss a quarterly payment or pay late, you may be subject to a penalty. If you earn your self-employment income unevenly throughout the year, you may be able to use a annualized installment method at tax time and avoid a tax penalty for not paying estimated taxes each quarter due to fluctuating income.
When are estimated taxes due?
The 2022 quarterly estimated tax deadlines are:
- 2022 1st quarter (January 1 – March 31, 2022): April 18, 2022
- Q2 2022 (April 1 – May 31): June 15, 2022
- 3rd Quarter 2022 (June 1 – August 31): September 15, 2022
- Fourth Quarter 2022 (September 1 – December 31): January 17, 2023
If the 15th falls on a weekend or holiday, then the due date is the next day of the week. Don’t forget that the final payment due date for the fourth quarter of your 2022 taxes is January 17, 2023.
*Please note that if you are the victim of a recent federally declared disaster, IRS tax filing and payment deadline extensions may be available to you. You can check the additional relief information in the IRS Disaster Relief Page.
How can I find out my estimated taxes?
You can use QuickBooks on your own to track your income, expenses, mileage, and calculate your estimated taxes throughout the year. The program does the math for you and helps you calculate your estimated taxes, so you can easily meet your estimated tax deadline. At the end of the year, QuickBooks Self-Employed gives you the ability to export the information in Schedule C from QuickBooks Self-Employed to Self Employed TurboTax to make your annual tax return easier.
When you prepare your taxes, TurboTax it can also automatically calculate your estimated tax payments and print payment stubs for you to send to the IRS. you can also use TurboTax Tax Caster to get an estimate of your overall tax picture and whether you are required to make an estimated tax payment.
How can I pay the estimated tax?
Now that you know what you owe, it’s time to enter your payment. Fortunately, you have several options:
- QuickBooks Self-Employed allows you to electronically submit your quarterly estimated tax payments to the IRS. Filing electronically is quick and produces fewer errors because you won’t have to re-enter the information into your checkbook or the IRS computer system.
- You can use the Electronic Federal Tax Payment System (EFTPS) to pay your estimated taxes. In addition to making instant payments, it’s also free.
- You can send your payment by mail. The IRS has specific mailing addresses based on the state where you live. Please note that your payments must be postmarked by the due date to avoid penalties.
Tips to make your quarterly tax payments easier
- Forget filling out handwritten forms: when you use QuickBooks on your own for your business, the program will calculate your estimated taxes for you. TurboTax you can also find and generate your estimated pay stubs automatically when you prepare your taxes using TurboTax.
- Keep track of all your estimated tax payments: You will need to enter the estimated taxes you have paid when you file your tax return.
TurboTax has you covered
Don’t worry about knowing these tax rules. TurboTax it will ask you simple questions about yourself and give you the deductions and tax credits you are eligible for based on your inputs. If you are self-employed, you can use QuickBooks on your own to easily track your income, expenses, mileage, capture your receipts, and estimate your quarterly taxes throughout the year. Your information can be easily exported to Self Employed TurboTax at tax time. You can also transfer all of your taxes to a TurboTax Live Self Employed Tax Expert that you can do your taxes from start to finish.
First Time Taxpayers: Your Guide to Filing Your Taxes
Hobby Meets Hustle: Small Business Ideas to Keep You Organized…
19 responses to “Are you self-employed? Quarterly Tax Date Deadlines”
Leave a Reply