If you’re a taxpayer who works as an independent contractor or is otherwise self-employed, you may have questions about when you need to make tax payments to the IRS. Our pay-as-you-go system requires taxpayers to pay tax throughout the year; most taxpayers have their tax withheld by their employer, but self-employed taxpayers must make estimated tax payments to meet the pay-as-you-go requirement. There are four estimated tax deadlines (in April, June, September, and January) that taxpayers must adhere to.
Missing the Deadline
If you miss a deadline for paying estimated taxes, nothing is going to happen right away. However, after you file your tax return, the IRS may charge you a penalty even if you are owed a refund. You can even get charged this penalty if you pay your estimated taxes by the deadline but simply don’t pay enough.
As such, it’s important for you to pay close attention to the payment due dates and make sure you are paying the right amount. If you do happen to miss the deadline, make your estimated payment as soon as possible. There’s no guarantee that this will prevent the IRS from hitting you with penalties, but paying as soon as possible could help limit how much of a penalty you end up facing.
If you’re in need of help with estimated taxes, turn to the pros at Taxation Solutions, Inc. We can help you determine how much you need to pay to avoid penalties and make sure that you know when the deadlines are!