Sunday, June 26

IRS Estimated Tax Payments 2022: When are the due dates for tax payments?

If you are self-employed or make a non-wage income, the chances are you’ll have to set aside a certain amount of your earnings in order to pay for estimated taxes four times a year.

Estimated taxes refer to the income that is unaffected by federal tax withholding throughout the year but is still subject to other tax payments. These payments are recorded and are paid through estimated taxes, which must be paid as income is earned during the year.

What are estimated taxes in the USA?

Individuals who pay estimated taxes have a slightly different filing schedule to everyone else. If your paycheck doesn’t have income taxes taken out before the money gets to you, then this requirement applies to you.

Entrepreneurs, independent contractor jobs or anyone who is self-employed might fall into this category, with estimated taxes due on a quarterly basis and submitted via the Form 1040-ES.

Individuals engaged in the service sector and who earn tips must also inform their employer about their earnings by the 10th of the following so that their employer can send that number to the IRS and adjust how much money comes out of your paycheck to satisfy your tip withholding.

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What earnings not subjected to estimated taxes?

There are certain forms of earning that are not subject to tax-withholding penalties these include:

  • Interest
  • Dividends
  • Capital gains
  • Self-employment earnings
  • Gig economy earnings
  • Prizes
  • Rents
  • Alimony
  • Unemployment compensation
  • Social Security benefits in some cases

However, it is crucial that you calculate how much you owe to the IRS and make the payments in a timely manner as penalties and interest generally apply for underpayments and late payments.

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What are the important dates to note for estimated taxes due in 2022?

Estimated taxes in 2022, must be filed on or before the following dates:

  • First-quarter payments: April 18, 2022
  • Second-quarter payments: June 15, 2022
  • Third-quarter payments: September 15, 2022
  • Fourth-quarter payments: January 17, 2023

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