Estimated Taxes for the 4th Quarter are Due!

January 17th is the deadline for family child care providers to file your federal estimated tax payment for the fourth quarter of 2022.

The fourth quarter includes the months of September, October, November, and December. Yes, the tax quarters for estimated taxes are not equal to the other periods…so make sure you include everything in those months.

Most child care providers do not need to file estimated taxes (IRS Form 1040 ES Estimated Tax for Individuals). This is because their spouse usually has enough withheld in taxes to cover them. You are most likely to need to file estimated taxes if you are single or you have a spouse who is unemployed or self-employed.

If you are not sure if you or your spouse has paid in enough taxes for the months of September, October, November, and December, you should make a tax payment with this form. Your goal is to have paid in at least 90% of the taxes you owe for this quarter to avoid paying a penalty.

If you pay in too much you will get a refund. How do you know how much you will owe in taxes? If you were in business in 2021 use that year as a guide. If 2022 was your first year, use 20% of your gross income (parents' fees plus Food Program income) for September, October, November, and December as a conservative guess of how much you will owe.

You can pay your taxes by check or online using the Estimated Federal Tax Payment System (EFTPS).

For more information, see Tom’s Family Child Care Tax Workbook and Organizer