The last chance for some filers to avoid a tax penalty is Jan. 18.
Fourth-quarter estimated tax payments are due on Jan. 18 for income from self-employment, small businesses, gig economy work, investments and more.
You can skip penalties by paying 90% of taxes for 2021 or 100% of 2020 levies if your adjusted gross income is less than $150,000.Next week may be the last chance for some filers to avoid a tax penalty and reduce their bill in April. The deadline for fourth-quarter estimated tax payments is Jan. 18, applying to income from self-employment, small businesses, gig economy work, investments and more.
And if you missed previous quarterly payments for 2021, you can send extra now, which may reduce or eliminate late penalties, rather than waiting until the April filing deadline,"Everyone needs to pay taxes," said certified financial planner Bryan Hasling, partner at Lodestar Private Asset Management in Alamo, California. "And the IRS strongly prefers that you pay them steadily across the year as opposed to waiting until the last minute — which is tax day.
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