Usually it would file my taxes and I would pay them over the course of the 2023 year. Why is it making me pay them all by next month?
Taxes on your tax year 2022 return are due on April 18th, 2023, if you, in fact, owe any taxes. To avoid any late payment penalties and interest, any taxes you owe have to be paid by this date, even if you file an extension.
You may be thinking of estimated tax payments. These are made during the year -- they're a pay-as-you-go tax similar to what would be withheld during the year if you were employed by an employer, as opposed to being self-employed. For instance, you'd make payments related to the 2023 tax year during the year, this year, which would be accounted for on the tax year 2023 return you file next year.
Making quarterly estimated tax payments can keep you from having a significant bill come tax return filing time next year, and can also prevent you being assessed an underpayment penalty.
Please see the TurboTax Help articles Do I need to make estimated tax payments to the IRS? and Tax year 2022 calendar: Important federal dates and deadlines? for more information.
You might also see the TurboTax Help article Can I set up a payment plan for my taxes? for how to apply for a payment plan using the TurboTax program, if that's necessary.
Obviously.
My question was geared towards the fact that in past years using TurboTax, I would be able to pay 2022 throughout 2023 and make sure those were paid by April 15th, 2024—NOT 2023. That's why I am confused.
So, let me ask this—in past years using TurboTax, I would be able to pay 2022 throughout 2023 and make sure those were paid by April 15th, 2024—NOT 2023. That's why I am confused.
the taxes owed on your 2022 tax return must be paid as Estimated Tax throughout 2022 in quarters, starting April 15 2022, with the last quarterly payment due Jan 15 2023 and marked for 2022.
April 15 2023 is the day you make up any shortfall in the tax you paid in as Estimated Tax and also , separately, the day of the first payment for 2023.
There's a shortfall allowance of up to $1,000. If you own more than that April 15, there may be a penalty.
I would think TurboTax would raise a lot of red flags on your tax return if you are not filling out your tax return the correct way.
You are very confused. If you have been paying the 4 quarterly slips each year that Turbo Tax prints out those were prepayments towards the NEXT year's return, not the current tax due.
The current year tax due is always due the first April 15 after the year ends, not a whole year later. It is one 1040V voucher slip or by Direct Debit from your bank account. And not by payments throughout the year unless you set up an installment plan with the IRS.
The 1040ES slips are quarterly Estimated payments for the next year so you don't owe so much next time.