4th Quarter Estimated Taxes: When Are They Due?

4th Quarter Estimated Taxes: When Are They Due?

As a self-employed individual, you're responsible for paying your own taxes. This includes making estimated tax payments throughout the year. The 4th quarter estimated taxes are due on January 15th of the following year. In this article, we'll dive into the details of when 4th quarter estimated taxes are due and what you need to know to avoid any penalties.

What Are Estimated Taxes?

Estimated taxes are payments made by self-employed individuals and small business owners to the Internal Revenue Service (IRS) throughout the year. These payments are used to pay for the taxes owed on your business income. The IRS requires you to make estimated tax payments if you expect to owe $1,000 or more in taxes for the year.

When Are 4th Quarter Estimated Taxes Due?

The 4th quarter estimated taxes are due on January 15th of the following year. For example, if you're self-employed and your business year ends on December 31st, your 4th quarter estimated taxes would be due on January 15th of the following year.

What Happens If You Miss the Deadline?

If you miss the deadline for paying your 4th quarter estimated taxes, you may be subject to penalties and interest. The IRS charges a penalty of 0.5% of the unpaid taxes for each month or part of a month that the payment is late. Additionally, the IRS charges interest on the unpaid taxes.

How to Avoid Penalties

To avoid penalties, make sure to pay your 4th quarter estimated taxes on time. You can pay your estimated taxes online, by phone, or by mail. You can also use a tax professional or accountant to help you with your estimated tax payments.

Conclusion

In conclusion, the 4th quarter estimated taxes are due on January 15th of the following year. If you miss the deadline, you may be subject to penalties and interest. To avoid penalties, make sure to pay your estimated taxes on time and consider using a tax professional or accountant to help you with your estimated tax payments.