When are 2023 Q3 estimated taxes due for self-employed individuals?
Self-employed business owners must make estimated tax payments if they expect to owe at least $1,000 in a calendar year or owe taxes from the previous year. Referred to as estimated taxes, business owners make quarterly tax payments to the Internal Revenue Service (IRS) for estimated earnings from each quarter of the year.
To figure the amount of your estimated tax payment, you'll need to calculate your taxable income, taking into account your adjusted gross income, deductions, and credits for that tax year. If you need guidance on how much tax you should pay for a given quarter, you can use Form 1040-ES or the IRS's tax withholding calculator. If you're struggling to figure this all out, getting a little assistance can make a world of difference (and save you time and money).
You should have already paid estimated taxes for both the first and second quarters for 2023. Q3 estimated taxes are due on September 15, 2023. The fourth quarter, and final estimated tax payment for 2023, is due on January 16, 2024.
If you know you'll owe estimated taxes, it's a good idea to calendar the due dates and a reminder date for each quarter.
How do I pay my Q3 2023 quarterly taxes?
To pay Q3 estimated taxes, you can pay them online through IRS Direct Pay, using your checking or savings account or a credit or debit card. You can also pay through the Electronic Federal Tax Payment System (EFTPS). You may prefer to pay weekly, bi-weekly, or monthly based on your business's cash flow. As long as you pay in enough by the end of the quarter, you can choose a more flexible option to fit your business. If you prefer the paper route, you can mail in a check or money order for your estimated payments.
What happens if I miss my Q3 2023 tax payment?
If you don't pay or you underpay your quarterly taxes, you might face a penalty. Generally, as a self-employed individual, you don't have to pay the penalty if you owe less than $1,000 in tax annually or if you paid either:
- At least 90% of the estimated tax for the current tax year.
- 100% of the tax shown on your previous year's tax return, whichever is less.
To see if you owe a penalty due to underpayment, you can use Form 2210 to help you determine if you do and how much it's going to cost.
To stay in business, you need to make money and satisfy your legal obligations, and that includes paying your taxes. If you are a self-employed business owner, be sure to make your next estimated quarterly payment by September 15, 2023.
If you have questions about tax planning for your business, or other issues that come up while running your business, reach out to a Rocket Lawyer network attorney for affordable legal advice.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.