REMINDER: Pay Your Quarterly Estimated Tax!
Audio version available here:
Length: approx. 1 min. 20 sec.
This is a reminder that the final 2023 estimated tax payment is due on January 16th, 2024. If you have not finished paying your 2023 tax obligation, this is your final opportunity to settle your balance with the IRS before facing possible penalties and interest.
Who needs to make this payment? Though most taxpayers have their taxes automatically withheld from their income, certain taxpayers such as independent contractors and self-employed individuals generally do not have their taxes withheld. In this case, you need to calculate and pay your quarterly estimated taxes on eligible income, which includes but is not limited to, “unemployment income, refund interest or income from the gig economy and digital assets”.
What about the lowered 1099-K reporting threshold? Recently, it was announced that the reporting threshold on third-party transactions being reduced from $20,000 to $600 would be delayed yet again. 2023 is now a transitional year with no change, so unless you have hit $20,000 from multiple transactions, you are not likely to be issued a 1099-K.
How do I calculate my quarterly estimated tax? If you are unsure of how to calculate your quarterly tax payment, please watch our tutorial. The deadline is approaching rapidly on January 16th, so if you have further questions, please do not hesitate to reach out to XQ CPA’s experienced tax professionals for guidance. Simply call us or use our online booking service to schedule an appointment. We are here to help you.
Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php