The Internal Revenue Service (IRS) suggests how to avoid surprise tax bill and penalties by filing income taxes due on January 17.
IRS on Surprise Tax Bill
The IRS encouraged everyone to avoid a surprise tax bill and additional penalties if they did not pay enough taxes in 2022. The agency said that the deadline for the fourth-quarter estimated tax payments for 2022 will be on January 17.
The IRS added that this is applicable to those whose income is from self-employment, investments, gig economy work, and more.
Meanwhile, certified financial planner John Chichester Jr., founder and CEO of Chichester Financial Group in Phoenix, said, “It’s where you can make yourself whole at the end of the year.”
Furthermore, you normally need to make payments four times a year if taxes are not being deducted from your income. A late payment penalty of 0.5% of your outstanding total every month or partial month, up to 25%, may also be due if you don’t pay on time.
What’s the Best Way To Pay the Tax?
With online scheduling possibilities prior to the deadline of January 17, the IRS claims that Direct Pay is the fastest and simplest method for making payments. You can also pay your taxes electronically via the Electronic Federal Tax Payment System or online through your IRS account, which gives you access to your payment history. The website for IRS payments allows you to view other possibilities.