ESTIMATED TAX PAYMENT
INTERNAL REVENUE SERVICE reminds gig workers, self-employed and others of Sept. 15 third quarter estimated tax payment deadline.
Taxpayers not subject to withholding may need to make quarterly estimated tax payments. Taxpayers such as gig workers, sole proprietors, retirees, partners and S corporation shareholders generally must make estimated tax payments if they expect to have a tax liability of $1,000 or more when they file their return.
A general rule of thumb is that taxpayers should make estimated tax payments if they expect:
– To owe at least $1,000 in taxes for 2023 after subtracting their withholding and tax credits.
-Their withholding and tax credits to be less than the smaller of:
90% of the tax to be shown on their 2023 tax return or
100% of the tax shown on their complete 12-month 2022 tax return.
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COPIED from an IRS NEWS WIRE received on 9/6/2023.