The first tax deadline of 2022 is already in sight! Keep reading to learn more about quarterly estimated tax payments, plus some useful tax tips.
What are Quarterly Estimated Tax Payments?
As you may already know, income tax is paid throughout the year. This happens in two ways. Most people have this tax withhold from their paychecks, Social Security benefits, or unemployment compensation.
However, people like self-employed individuals and investors often pay their taxes by making quarterly estimated tax payments. The deadline for making payments for the fourth quarter of 2021 is Tuesday, January 18, 2022.
Paying your taxes on time is important because it allows you to avoid penalties and interests. If you failed to make other quarterly payments earlier in the year, take action now. This way you’ll avoid paying an even larger penalty.
Some Things to Keep in Mind
Remember that all income is taxable. This includes investment income (even virtual currencies!) and income from the gig economy (for example, Uber drivers).
You should also keep in mind that, while this wasn’t the case in 2020 (as an exception due to the coronavirus pandemic), in 2021, unemployment compensation is fully taxable.
If you have questions about estimated tax payments, or if you need to make one, contact the experts at JT Taxes. We’ll be happy to help you determine whether you need to make a payment. If you do, we’ll guide you through the process using our friendly and easy-to-understand approach.
Finally, remember that filing season is approaching: Tax Day in 2022 is April 18. Regardless of how you pay your taxes, our experts stand ready to answer all your questions and help you file your taxes easily and without stress.
Need Help With Your Taxes? Contact the Experts at JT Tax Services
Do you need assistance with personal or business taxes? JT Tax Services is here to help! We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.
We are located in Oxnard, California. Contact us today by email (email@example.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.