A tax deadline that is very important is only two weeks away, and if it applies to you you’ll face penalties if you miss it.
The deadline is Jan. 18, 2022 for those who need to make estimated tax payments for quarter 4 of 2021.
Most people pay their income taxes by withholding money from their paychecks through the year.
Those that this applies to are usually self employed people or investors that need to pay their taxes all at once on a quarterly basis.
Related: Refunds in 2022 may be much smaller
The year is divided into 4 quarters for estimated taxes.
Each quarter has its own due date.
If you fail to pay enough by each due date, you’ll face a penalty, even if you’re owed money from a refund.
Related: IRS 2022 returns: When will they start accepting?
Penalties for missing the tax deadline
Your penalties for missing this deadline depend on your income and how much you missed it by.
.5% of the amount owed is the typical penalty following the due date.
Every partial or full month that goes by in increases.
25% of what is owed is the highest you can be penalized.
Related: IRS: Tax deadline extension for 2022 granted to some
How to pay the estimated tax
The easiest way is to use Direct Pay through the IRS.
You can schedule a payment ahead of time using Direct Pay.
Credit, debit, or digital wallet can be used to pay your bill.
You can apply for a payment plan if you do not have the amount owed all at once.
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