TAX AND WEALTH ADVISOR ALERT - IRS REMINDS INDIVIDUAL TAXPAYERS OF SEPTEMBER 15 DEADLINE FOR THIRD QUARTER ESTIMATED TAX PAYMENTS

Sep 19, 2026

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IRS reminded individuals who make estimated tax payments that the deadline for the third quarter payment is September 15, 2022. For tax year 2022, the final estimated payment is due January 17, 2023. Estimated taxes may apply to self-employed taxpayers, investors, retirees, and others with income not covered by withholding, including interest, dividends, capital gains, alimony, cryptocurrency, and rental income. The notice explains how to estimate AGI, taxable income, deductions, credits, and how to reduce underpayment penalties, plus notes special rules and planning guidance.

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IRS reminder on estimated tax deadlines

Third quarter estimated tax payment due dates

Who may need to make estimated tax payments

How to calculate estimated tax and avoid penalties

Estate and tax planning during market turmoil

Review basic estate planning documents

Make an annual gift exclusion

Fund irrevocable trusts or Roth IRA rollovers

Tax-loss harvesting and wash-sale rules

Intra-family transactions and GRATS/CLATs

TAX AND WEALTH ADVISOR ALERT: IRS REMINDS INDIVIDUAL TAXPAYERS OF SEPTEMBER 15 DEADLINE FOR THIRD QUARTER ESTIMATED TAX PAYMENTS The IRS has reminded taxpayers who pay estimated taxes that the deadline to submit their third quarter estimated tax payments is September 15, 2022. The fourth and ﬁnal estimated tax payment for tax year 2022 is due January 17, 2023. Taxpayers not subject to withholding, such as those who are self-employed, investors, or retirees, may need to make quarterly estimated tax payments. Taxpayers with other income not subject to withholding, including interest, dividends, capital gains, alimony, cryptocurrency, and rental income, also normally need to make estimated tax payments. In most cases, individual taxpayers need to make estimated tax payments if they expect their tax liability to be at least $1,000 for the tax year 2022, after subtracting their withholding and tax credits. Special rules apply to some groups of taxpayers, such as farmers, ﬁshermen, casualty and disaster victims, those who recently became disabled, recent retirees, and those who receive income unevenly during the year. To compute estimated tax, individuals must determine their expected Adjusted Gross Income (AGI), taxable income, taxes, deductions, and credits for the year. While calculating their 2022 estimated tax, it is helpful for taxpayers to use their income, deductions, and credits for 2021 as a starting point. Taxpayers can avoid underpayment penalties by making payments of at least 90% of the tax expected on their 2022 income tax return, or by making payments of at least 100% of the tax shown on their 2021 income tax return. The IRS may waive such penalties for underpayment due to unusual circumstances, but not willful neglect. Additional information regarding individuals that need to make Federal and Wisconsin estimated tax payments and how to make such payments can be found here. For questions or further information relating to estimated tax payments, please contact Attorney Britany E. Morrison. TAX AND WEALTH ADVISOR ALERT: ESTATE AND TAX PLANNING DURING MARKET TUMULT The worldwide equity market tumult is creating some unique and unprecedented challenges. However, plunging asset values are presenting some rare opportunities in wealth planning that are often only seen once in a generation. Below are some strategies you may wish to incorporate into your estate and tax planning during this time. Basic Estate Planning: Now, more so than ever, it is important to make sure your family is provided for in your estate plan. This means reviewing your current estate planning documents to ensure the principal documents are in order. Wills, revocable trusts, powers of attorney, beneﬁciary designations and health care directives should all be reviewed to ensure that these documents reﬂect your current wishes. Make an Annual Gift Exclusion: You can make an annual tax-free gift of $16,000 per person (for married couples, a combined $32,000) that does not count against your lifetime gift tax exclusion (currently $12.06 million per person) . Using marketable securities as the gifted asset when volatility is so high, and valuations are down, can oﬀer you some extra stretch on gifts made now before valuations rise in the future. Place Assets into Existing Irrevocable Trusts or Fund a New Irrevocable Trust: Like making an annual gift, funding an irrevocable trust with securities while valuations are low allows for more assets to be placed in the trust (when measured against the lifetime exclusion) and allows you to transfer more of your wealth tax-free. Make Roth IRA Rollovers: The “cost” of converting a traditional IRA into a Roth IRA is paying taxes now on the current value of the IRA, therefore, it is best to make these conversions when the market is down. Tax-Loss Harvesting: Some may consider lowering their tax liability by selling a security now at a loss to oﬀset gains from earlier this year or in the future. Howe

FAQs

Who does the IRS estimated tax reminder apply to?

It applies to taxpayers who pay estimated taxes and to individuals whose income is not subject to withholding, such as self-employed people, investors, and retirees. It also covers various types of income like interest, dividends, capital gains, and rental income.

What are the key estimated tax deadlines mentioned?

The third quarter estimated tax payment deadline is September 15, 2022. The final fourth payment for tax year 2022 is due January 17, 2023.

How can taxpayers avoid underpayment penalties when making estimated taxes?

Taxpayers can avoid penalties by making payments of at least 90% of the expected 2022 tax shown on their 2022 return, or at least 100% of the tax shown on their 2021 return. The IRS may waive penalties for underpayment caused by unusual circumstances, but not for willful neglect.

Sep 19, 2026

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