According to the law, all people must pay taxes as they earn income. Taxpayers generally must pay at least 90% of their taxes throughout the year through withholding, estimated or additional tax payments, or in a combination of both.
If taxpayers do not do this, they could have an estimated tax penalty when they file their return. Some taxpayers earn income not subject to withholding, such as small business owners and self-employed individuals. In these situations, they would have to make quarterly payments of estimated taxes.
That is, since the government does not withhold those taxes, you are obliged to pay them on your own.
Consider the following six points to know if you need to pay estimated taxes:
1–Generally, taxpayers need to make estimated tax payments if they expect to owe $1,000 dollars or more when they file your 2022 tax return, after adjusting any withholding.
2–The IRS asks everyone in this situation to check their withholdings through the Tax Withholding Estimator tool that is available in Spanish on the IRS.gov website. If this tool suggests a change, you can file a new Form W-4.
3–In addition to business owners and self-employed people, among those who must make estimated payments there are also sole proprietors of businesses, partners and shareholders of corporations. It also usually includes people who participate in the sharing economy, such as those who work in Uber and those types of apps.
4–Businesses generally must make these payments if they expect to owe $2022 dollars or more on their 2022.
5–In addition to income tax, taxpayers may have to pay other taxes through estimated tax payments. This includes the self-employment tax and the alternative minimum tax.
6–The remaining installments to pay the quarterly estimated tax of 2022 are: 15 June, 15 September and 17 of January of 2023.
Remember that anyone who does not fully pay the taxes due through withholding, payments of estimated taxes, or a combination of the two, may be subject to a penalty.
In some cases, the penalty may also apply if your estimated tax payments are late.
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