Hey there, hardworking individuals! If you’re a freelancer, entrepreneur, or have income without withholdings, listen up because an important deadline is approaching. The IRS has set June 15 as the due date for your 2023 second-quarter estimated tax payments. Whether you earn money through self-employment, investments, gig economy work, or your employer doesn’t withhold enough from each paycheck, this deadline applies to you too. It’s all about staying on top of your tax obligations and avoiding any surprises come tax time.
Making quarterly estimated tax payments is crucial for managing your finances throughout the year and avoiding penalties. We know taxes can be overwhelming, so we’re here to guide you through the process and help you meet the “safe harbor” rule to steer clear of underpayment penalties.
You can download the Wellthi app here. Act by July 3, you could win $10,000 for just posting your financial goal in the app!
To stay current and avoid any penalties, it’s important to calculate your tax payments accurately and make them on time. Remember, the U.S. tax system operates on a “pay-as-you-go” basis, meaning you’re expected to pay taxes throughout the year as you earn income. Failing to do so may result in penalties and added interest.
To meet the “safe harbor” requirements, you have two options. You can either pay at least 90% of your current year’s tax liability or 100% of the previous year’s taxes, whichever is smaller. This rule provides a safeguard against underpayment penalties and ensures you’re meeting your tax obligations.
However, high-income taxpayers have a slightly different rule to follow. If your adjusted gross income for 2022 was $150,000 or more, you’ll need to pay 110% of last year’s taxes to meet the safe harbor requirement for 2023. Adjusted gross income can be found on line 11 of your 2022 tax return.
Now, let’s talk about how to make your quarterly estimated tax payments. The IRS recommends electronic payments as the fastest, easiest, and most secure option. You can make payments through your online account, using services like Direct Pay or the Electronic Federal Tax Payment System. Keep in mind that debit and credit card payments may incur a fee, so it’s best to explore the options available to you.
We understand that taxes can be daunting, but it’s important to keep accurate records, monitor your tax situation, and seek professional guidance if needed. At Wellthi, we’re all about empowering you to take control of your finances, and that includes navigating the world of taxes with confidence.
Don’t let the June 15 deadline pass you by. Take a proactive approach, stay on top of your tax obligations, and enjoy the peace of mind that comes with being financially responsible.
Remember, you’re not alone on this journey. Wellthi is here to support you every step of the way, ensuring your financial success and well-being.
If you want more information on how to make your quarterly estimated tax payments or any other financial matters, check out the IRS website for detailed guidance. Stay tuned for more helpful tips and insights from Wellthi as we guide you toward your financial goals. Together, let’s embrace financial wellness and create a future where you thrive.
You can download the Wellthi app here. Act by July 3, you could win $10,000 for just posting your financial goal in the app!
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