2023 4TH QUARTER ESTIMATE TAX DUE DATE, 1/16/2024

GENERAL TAX INFORMATION

Terry Kim

12/18/20232 min read

IRS reminds taxpayers, Jan. 16 due date for the final 2023 quarterly estimated tax payments

📣 IRS reminds taxpayers that the due date for the final quarterly estimated tax payments for 2023 is January 16th.

Don't forget to submit your payment to avoid a potential penalty or tax bill when filing in 2024. Paying taxes throughout the year helps ensure that you meet your tax obligations as you earn income. This is especially important for self-employed individuals or independent contractors who don't have taxes withheld from their earnings. It is advised that you make quarterly tax payments to the IRS. ❗️🏦💼💸‼️

Additionally, if you experienced a situation where you owed tax when filing your previous year's tax return, it's likely that you may find yourself in a similar situation this year. Common scenarios include those who switched from itemizing deductions to taking the standard deduction, households with two wage earners, individuals with non-wage sources of income, taxpayers with complex financial circumstances, or those who failed to adjust their tax withholding accordingly.

Remember, most income is taxable. This includes unemployment income, refund interest, income from the gig economy, and earnings from the sale of goods. Take into account all forms of earned income when estimating your quarterly tax payments, including income from part-time work or side jobs. Be aware that certain financial transactions, such as bonuses, lottery winnings, stock dividends, and capital gain distributions, may have unexpected tax implications.

Regarding Forms 1099-K, the IRS has announced that calendar year 2023 will be treated as another transition year. Third-party settlement organizations are only required to report transactions if the gross payments exceed $20,000 and there are more than 200 transactions. To learn more, the IRS has issued a helpful fact sheet for individuals who might receive Forms 1099-K. 💳

Making an estimated tax payment is quick and easy when done electronically. Taxpayers have various options to pay electronically from their bank accounts. Choose from options such as IRS Direct Pay or the IRS Online Account to schedule your payment in advance. Alternatively, use the Electronic Filing Tax Payment System (EFTPS) for scheduling, tracking, and changing payments. Remember that debit or credit card payments may include additional fees. 🔍💡

To stay on top of your tax withholding, use the Tax Withholding Estimator available on IRS.gov. This tool can help you determine if you need to make estimated tax payments and calculate the correct amount of tax to withhold throughout the year based on your personal tax situation. You can also refer to Form 1040-ES or Publication 505 for more guidance on estimating your tax payments and managing your withholding. ⏰📚💡

Prepare ahead and plan for the upcoming tax-filing season. For more information, tips, and resources, visit the Get Ready and Estimated Tax pages on IRS.gov. 📚🗂️📂🖊️✅📆