The IRS is reminding taxpayers who pay estimated taxes that the deadline to submit their third quarter payment is Friday, Sept. 15.
Taxpayers such as gig workers, sole proprietors, retirees, partners and S corporation shareholders generally must make estimated tax payments if they expect to have a tax liability of $1,000 or more when they file their return.
A general rule of thumb is that taxpayers should make estimated tax payments if they expect:
- To owe at least $1,000 in taxes for 2023 after subtracting their withholding and tax credits.
- Their withholding and tax credits to be less than the smaller of:
- 90% of the tax to be shown on their 2023 tax return or
- 100% of the tax shown on their complete 12-month 2022 tax return.