Q4 2022 Estimated Tax Payments Are Due on Jan. 17 -- What to Know

What happened

The IRS is reminding taxpayers that final 2022 estimated tax payments are due on Jan. 17. Taxpayers who aren't subject to tax withholding, such as freelancers, independent contractors, and self-employed workers, often make quarterly tax payments to the IRS and don't want to miss the deadline.

In a recent news release, the IRS noted: "The Internal Revenue Service today urged those who paid too little tax in 2022 to make a fourth-quarter payment on or before Jan. 17 to avoid an unexpected potential tax bill or penalty when they file in 2023."

So what

In the United States, taxpayers are responsible for paying taxes as they earn income throughout the year. If you're not having taxes withheld, you need to set money aside and make the payments yourself. 

If you don't pay enough taxes and don't keep up with quarterly estimated tax payments, you may be subject to penalties and or get a surprise tax bill at a later date. If you end up owing money later, you may have to pause some of your other personal finance goals to be able to pay Uncle Sam.

Now what

It's not too late to act. Don't put yourself at risk for penalties, interest charges on late payments, or an expensive tax bill. If you haven't paid enough taxes throughout 2022, you may want to boost your final Q4 estimated tax payment to play catch up. 

In the news release mentioned above, the IRS suggested the following: "If a taxpayer failed to make required quarterly estimated tax payments earlier in the year, making a payment soon to cover these missed payments will usually lessen and may even eliminate any possible penalty."

If you've remained on top of your estimated tax payments, that's excellent news. Promptly making your final quarterly payment will help you feel more confident that you're prepared for the upcoming tax season. 

If you're new to self-employment or freelancing and need help this tax season, you may want to use tax software to make the tax-filing process more manageable. Review our list of the best self-employment tax software to learn more about your options.