What are the due dates for estimated tax payments 2023?
Understanding the due dates for estimated tax payments is crucial for individuals and businesses to ensure they meet their tax obligations on time. Estimated tax payments are advance payments of tax that you make in four installments during the year. These payments are typically required if you expect to owe $1,000 or more in tax after subtracting your withholding and credits, and you expect your tax liability to be more than 90% of your tax for the prior year.
For the tax year 2023, the due dates for estimated tax payments are as follows:
- April 18, 2023: This is the first installment due date. It is important to note that if April 18 falls on a weekend or a holiday, the deadline is extended to the next business day.
- June 15, 2023: The second installment is due on this date. Similar to the first installment, if June 15 falls on a weekend or a holiday, the deadline is extended to the next business day.
- September 15, 2023: The third installment is due on this date. Again, if September 15 falls on a weekend or a holiday, the deadline is extended to the next business day.
- January 15, 2024: The final installment is due on this date. If January 15 falls on a weekend or a holiday, the deadline is extended to the next business day.
It is important to remember that penalties may apply if you fail to make estimated tax payments on time. To avoid penalties, it is advisable to estimate your tax liability for the year and make the required payments by the due dates. If you are unsure about how to calculate your estimated tax payments, it is recommended to consult a tax professional or use online tax calculators.
Additionally, it is worth noting that the IRS offers various options for making estimated tax payments, including electronic payment, check, or credit card. It is essential to keep accurate records of your estimated tax payments to ensure compliance with tax regulations and to avoid any potential issues with the IRS.
By understanding and adhering to the due dates for estimated tax payments 2023, individuals and businesses can ensure they fulfill their tax obligations and avoid any penalties or interest charges.
