Quarterly Tax Due Dates for the 2023 Tax Year
Who Do Quarterly Tax Due Dates Apply to?
If you are self-employed, have no significant W-2 income and expect to owe $1,000 or more on your taxes, then you should be paying quarterly taxes. Estimated quarterly tax payments are relevant to anyone who makes a significant amount of their income from freelancing; has a side hustle; or owns a small business, e.g. you drive for Uber or manage a freelance graphic design firm.
You may be wondering why freelancers and small business owners should pay quarterly. This is because while full time employees have taxes withheld on their paychecks, freelancers are not subject to the same tax withholdings. So instead of paying all your taxes in one big chunk at the end of the year, the IRS advises that self employed individuals split up your tax payments into four manageable installments throughout the year.
What are the Quarterly Tax Due Dates for 2023?
For 2023, your first quarterly tax payment is due on April 18th; your second payment is due on June 15th; your third payment is due on September 15th; and your final payment for 2023 is due on January 16th of the following year, 2024.
You want to make sure you get your tax payments in on time, so you don’t suffer any penalties.
Your 2023 Estimated Quarterly Tax Payments
There are a number of methods for estimating what you will owe in quarterly taxes. If your income is pretty predictable, then you can estimate what you will make for the entire year and divide that number by four. So if you think you will make $40,000 in 2023, you would pay $10,000 for your first quarterly tax payment; $10,000 for your second quarterly tax payment, etc.
If you are the type of self-employed person with highly variable income and may have a difficult time estimating what you will make in the second or third (or fourth) quarters of the year, then you can try the annualized income installment method. This approach allows you to annualize your income instead of splitting it into four even chunks. To learn more about this method and see if you qualify, visit the IRS’s handy page and try out their worksheet.
Whatever method you use, you will in-put your estimates on Form 1040-ES. If you end up either overestimating or underestimating your tax payment, then for the next quarter, you can fill out another Form 1040-ES. If you do end up overpaying, you can get a refund or apply that tax payment to the following quarter’s amount. This can get complicated, so we advise you speak to a trusted financial advisor when first starting out paying quarterly taxes.
Past Quarterly Tax Due Dates
To give you a sense of how quarterly tax due dates have evolved over the past few years, take a look at this table, which reflects the quarterly due dates from 2017 to 2020.
How Hurdlr Can Make Doing Taxes Easier
Hurdlr can simplify the way you pay taxes by offering real-time tax estimates and reminders of when to pay. Try our app and see how paying taxes quarterly will make tax payments easy.
Here Are 16 Real Estate Agent Tax Deductions
Gig Economy Jobs Like Uber
As an independent contractor, driving for an on demand economy company gives you the ability make money with your extra time. Drive during your lunch break, at night, or during busy weekends – it’s up to you. However, these companies don’t only provide taxi-style services; companies like HopSkipDrive enable the driver to chauffeur kids to their activities around town, similar to a nanny. Other rideshare companies allow the individual to use their vehicle to make extra cash by renting it out or sharing a ride to work. If you have a car, then there’s an on demand economy opportunity out there for you.
Gig Economy Sites Like Airbnb
Make money off renting out your home, car, boat, tools, or almost anything with these sites like Airbnb. If you are out of town, make money while you are away. If you have free space in a home you live in, you can leverage that too. You can also choose specifically who you would like to rent to – say, a college sports fan. Check these hosting companies out below.
Gig Economy Delivery Jobs Like Postmates
Delivery jobs vary in their specific functions, but they all allow independent contractors like yourself to travel, create a flexible schedule, and deliver goods (as opposed to passengers). Jobs like Postmates give you the ability to work short gigs during times like your lunch break or at night, while others like Roadie allow you to use space in your car for somewhere you are already going to deliver a package.
Unskilled On Demand Jobs
If you’re looking to help someone out and make some quick cash, then this section is for you. These companies function as automatic lead generators: instead of finding gigs by yourself, these companies give you the gigs. If you enjoy working with people and assisting them with their problems, many of the companies listed allow you to do just that.
Gig Economy Jobs for Freelancers
Freelancing allows individuals to work wherever they want, whenever they want, with whoever they want. Freelance occupations range from bloggers, lawyers, chefs, stylists, caregivers, techies, and many more. If you like the freedom to travel and be your own boss, check out the companies below.
Rideshare Companies With Jobs Like Uber
As an independent contractor, driving for an on demand economy company gives you the ability make money with your extra time. Drive during your lunch break, at night, or during busy weekends – it’s up to you. However, these companies don’t only provide taxi-style services; companies like HopSkipDrive enable the driver to chauffeur kids to their activities around town, similar to a nanny. Other rideshare companies allow the individual to use their vehicle to make extra cash by renting it out or sharing a ride to work. If you have a car, then there’s an on demand economy opportunity out there for you.
Sites Like Airbnb
Make money off renting out your home, car, boat, tools, or almost anything with these sites like Airbnb. If you are out of town, make money while you are away. If you have free space in a home you live in, you can leverage that too. You can also choose specifically who you would like to rent to – say, a college sports fan. Check these hosting companies out below.
Delivery Jobs Like Postmates
Delivery jobs vary in their specific functions, but they all allow independent contractors like yourself to travel, create a flexible schedule, and deliver goods (as opposed to passengers). Jobs like Postmates give you the ability to work short gigs during times like your lunch break or at night, while others like Roadie allow you to use space in your car for somewhere you are already going to deliver a package.
Unskilled On Demand Jobs
If you’re looking to help someone out and make some quick cash, then this section is for you. These companies function as automatic lead generators: instead of finding gigs by yourself, these companies give you the gigs. If you enjoy working with people and assisting them with their problems, many of the companies listed allow you to do just that.
Freelance On Demand Jobs
Freelancing allows individuals to work wherever they want, whenever they want, with whoever they want. Freelance occupations range from bloggers, lawyers, chefs, stylits, caregivers, techies, and many more. If you like the freedom to travel and be your own boss, check out the companies below.
