Just hours before the arrival of the deadline for filing taxes, this Tuesday, April 18, the Internal Revenue Service (IRS) reminds that this date is also the last day for tax payment estimates for the first quarter of the 2023 tax year.

Estos pagos se realizan normally por personas como las que trabajan por cuenta propia, jubilados, inversionistas, empresas, corporaciones y otros a quienes no se les retiene impuestos o por empleados a los que no se retiene suficientes impuestos por su empleador por lo que transcurre the year.

Income taxes are paid as they are earned. This means that, by law, taxes must be paid when income is earned or received during the year. Most people pay their taxes by withholding their paychecks, pensions, Social Security benefits, or certain government payments, including unemployment benefits.

Most of the time, those who are self-employed or in the gig economy have to make estimated tax payments. Similarly, investors, retirees and others generally have to make these payments since a significant portion of their income is not subject to withholding.

Other types of income generally not subject to withholding tax include interest, dividends, capital gains, alimony and rental income. Your estimated quarterly tax payment will generally decrease and may even eliminate penalties.

Exceptions to the penalty and special rules apply to certain groups of taxpayers, such as farmers, fishermen, people who have recently become disabled, people who have recently retired, who receive unequal income throughout the year and victims of accidents and disasters.

We have spoken with the IRS to request an extension of the tax filing deadline. An extension is for the deposit, not for paying. If you owe taxes, you must make that payment by April 18.

How to make estimated tax payments

Form 1040-ES, Estimated Tax for Individuals, includes instructions to help taxpayers calculate their estimated taxes. They can also visit IRS.gov/payments to pay electronically.

The best way to make a payment is through an IRS online account. There, taxpayers can view their payment history, any pending payments, and other useful tax information. Taxpayers can make estimated tax payments using IRS Direct Pay, a debit or credit card or digital wallet, or the Department of Taxation’s Electronic Federal Tax Payment System (EFTPS). Treasure.

For more information on other payment options, visit our page here.

Publication 505, Tax Withholding and Estimated Taxes, provides additional details, such as worksheets and examples, that may be particularly helpful for those with dividend or capital gains income who owe taxes. alternative minimum or taxes on own accounts or who have other special situations. .

Withholding Tax Estimator

The IRS urges people to use their tax deduction estimator tool to ensure the correct amount is withheld from their paychecks.

Periodically reviewing your withholding helps you avoid having too many withholdings and possibly receiving an unexpected tax bill or penalty during tax season. It also allows people to review withholding ahead of time, which translates to more money on their paychecks during the year and likely a smaller refund during tax season.

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