The deadline to make a payment for the fourth quarter of 2021 is Tuesday, January 18.
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The IRS is asking taxpayers to verify their tax payments to avoid being fined if they don’t pay by the due date or pay less than they owe.. And that’s because taxpayers who paid very little taxes during 2021 can still avoid receiving a surprise invoice at the time of tax return and a possible penalty if they make a quarterly estimated tax payment now, directly to the IRS.
The deadline to make a payment for the fourth quarter of 2021 is Tuesday, January 18, 2022.
Income taxes are those that taxpayers must pay the most during the year as income is earned or received. There are two ways to do this:
1– Through withholding of paychecks, pension payments, and some government payments, such as Social Security benefits or unemployment compensation. Most people pay their taxes this way.
2– Making quarterly estimated tax payments throughout the year to the IRS. Self-employed workers and investors, among others, often pay taxes in this way.
Any of the payment methods, whether for withholdings or estimated tax payments, or a combination of the two, can help you avoid receiving an unexpected tax bill at the time of tax payment. and the fine that is often applied.
If you didn’t make the required quarterly estimated tax payments at the beginning of the year, making an early payment to cover these late payments will generally decrease and may even eliminate any potential penalties. Because the penalty calculation considers the date the payment (s) were made, making a payment now, rather than waiting until the April deadline, can often help.
People who owed taxes when they filed their 2020 tax return may find themselves in the same situation again when they file their 2021 tax return, especially if they did not take steps to avoid another deficit by increasing their withholding during 2021.
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