Jhe IRS confirmed that there is a way to avoid a “surprise tax bill” for not paying enough tax in 2022, also bypassing additional penalties.
The deadline for fourth quarter tax payments from 2022 is January 17, 2023this applies to income earned through investments, gig work, self-employment and more.
Those who do not withhold income tax generally have to make four payments during the year. If they don’t, they could also owe interest and have a late payment penalty of 0.5% of their outstanding balance per month, up to 25%.
It’s the easiest way to make payments to the IRS
The IRS informed that direct payment is the easiest and fastest way to make tax payments online, with taxpayers able to schedule their options before the January 17 payment deadline.
your online IRS account also allows you to make payments through it, with the possibility of also being able to access the history of payments.
Many other options are available on the IRS website.
How to Avoid IRS Penalties
Taxpayers who have paid more than 90% of their 2022 taxes by the January 17 deadline or 100% of their 2021 tax bill, if their adjusted gross income is below the $150,000 threshold.
Experts recommend that individuals set aside 20% of their income to pay federal taxes, in addition to a smaller percentage to cover state taxes, depending on where they live.