Not everyone pays quarterly tax estimates, but if you do, make a note that the final tax payment deadline is not too far away.
The next quarterly tax deadline is Thursday, January 15, 2019.
That’s when the fourth and last estimated payment for the 2018 tax year is due. (Previous quarterly payments were due April 17, June 15, and Sept. 17, 2018).
For now, plan on paying your estimates on time, despite the government shutdown, says Edward S. Karl, CPA and vice president of taxation for the American Institute of CPAs, in an interview with AARP. “Taxpayers should absolutely make those payments” by January 15, advised Karl.
Who owes estimated taxes?
Most salaried individuals do not need to pay quarterly estimated taxes. That’s because enough tax is taken out of each paycheck to cover what they owe.
But people who are self-employed, or have sizable income other than salary, may need to pay estimated taxes each quarter. That’s how they make sure they pay in what they owe on income not subject to withholding, such as business earnings, dividends or capital gains, or taxable alimony.
How do I know if I’m affected?
Ask your tax preparer if you need to pay estimated taxes. If you do, you should have preprinted vouchers at home that you can send to the IRS with your quarterly payment. Keep track of what you pay each quarter, so you can get credit for taxes paid on your final return.