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The fourth-quarter estimated tax deadline is Jan. 16, and you could have a surprise bill or owe a penalty if you don’t send a payment.
You may owe estimated taxes with income from self-employment, small businesses, investments, gig economy work and more.
You can avoid an IRS penalty by paying the lesser of 90% of taxes for 2023 or 100% of your 2022 levies if your adjusted gross income is less than $150,000.

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The fourth-quarter estimated tax deadline is Jan. 16, and you could have a surprise bill or owe a penalty if you don’t send a payment, according to the IRS.
While many employers withhold levies from every paycheck, other income — such as freelancing, small business or investment earnings — requires a separate payment to the IRS.

Generally, you must make quarterly estimated payments for this income if you expect 2023 tax liability of $1,000 or more.
In December, the IRS reminded such taxpayers to make a fourth-quarter tax payment on or before Jan. 16 “to avoid a possible penalty or tax bill when filing in 2024.”
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“By making those payments, you avoid having to pay the IRS even more on April 15,” said certified public accountant Tom Wheelwright, CEO of WealthAbility.
If you miss the estimated tax payment deadline, you may trigger a late penalty of 0.5% of your unpaid balance per month or partial month, up to 25%, plus interest, which is currently 8%.

What to know about the ‘safe harbor’ rules

Filers can avoid an underpayment penalty by following the “safe harbor” guidelines, according to Mark Steber, chief tax information officer at Jackson Hewitt.
You meet the requirements by paying at least 90% of the current year’s tax liability or 100% of last year’s taxes, whichever is smaller.

But if your 2022 adjusted gross income was $150,000 or more, you need to pay the lesser of 90% of the current year’s tax liability or 110% of last year’s taxes to meet the safe harbor requirement for 2023. You can find adjusted gross income on line 11 of Form 1040 from your 2022 tax return.
“A really good tax projection [for 2023] is something that you need to think about right now,” Steber added. 

How to make quarterly estimated tax payments

With limited time until the deadline, “the fastest and easiest” option for remitting funds to the IRS is via electronic payments, according to the agency. Here are your options:

If you pay by sending a check in the mail, Wheelwright recommends sending it via certified mail with a return receipt because you may “have to prove that you made it on time.”

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Companies including Google, Amazon and Citigroup have opened the new year with job cuts.
If you’re newly out of work, experts say it would be wise to make certain moves now to shore up your finances and kick-start your job search.

Jackyenjoyphotography | Moment | Getty Images

The start of 2024 has not been kind to workers in industries that opened the year with layoffs.
Google has cut several hundred jobs in its central engineering, hardware and assistant teams. Amazon is shedding hundreds of positions across its Prime Video, MGM Studios, Twitch livestreaming and Audible divisions.

Tech is not the only sector to make headlines for job cuts. Citigroup is cutting 10% of its workforce amid a corporate overhaul.
Recent U.S. Department of Labor data shows layoffs have been hovering near historic lows — and experts say getting laid off no longer has the same stigma it once did.
“Being let go from a job is not as taboo as it once was years ago,” said Scott Dobroski, career trends expert at Indeed.

“There’s a variety of changes going on in the world of work. There have been a number of layoffs across the nation,” he said.
The following steps can help you shore up your finances and kick-start your job search.

1. Calculate severance pay, unused time off

You may receive a severance package from your employer or get paid for unused time off. Keep in mind that such time may be prorated based on the time of year, rather than your full annual allotment.
Find out when you might get your last paycheck and how the pay schedule works to better gauge the size of that deposit, advised Ted Jenkin, a certified financial planner and CEO of oXYGen Financial, a financial advisory and wealth management firm based in Atlanta. Jenkin is also a member of the CNBC Financial Advisor Council.
If you’re able to find a new job quickly, you may be able to bank the severance pay, he noted.
Also be sure to file for unemployment benefits right away, because getting approved can take weeks.

2. Consult with experts on your exit

3. Book important medical appointments

Now is a great time to get in any doctor’s appointments you need to make if you still have your employer-provided plan and flexible spending account, and before COBRA kicks in.
That should include dental and vision care, if possible, Jenkin said.

4. Take stock of any 401(k) loans you’ve taken

If you have taken a loan from your 401(k), check with your retirement plan provider to see what will happen to that balance after a job loss, Jenkin said.
Some plans may require the loan be paid back within 90 days, while others may allow you to roll the loan to a new 401(k), for example.
“If that loan is not paid back, it can become taxable income,” Jenkin said.

5. Use tools to boost your job search

The amount of work it takes to find a new job can be greatly reduced if you use technological tools, according to Dobroski.
Let your social media connections know you are looking for work. Also be sure to update profiles on job search sites with your skills, experience and what you want in a new role.
Using those tools may help you discover roles you may not have otherwise considered, said Dobroski, who has seen bank tellers transition to sales executives after finding the role was also a fit for their skill set.
“We’ve seen some people get jobs quicker and earn salaries of upward of $30,000, $35,000 or more because they’re finding a job that way,” Dobroski said.

6. Commit to at least one daily job-hunting task

Searching for a job can admittedly be an exhausting and frustrating process.
To keep yourself on track, a good rule of thumb is to commit to doing one thing every day, Dobroski said.
That may include updating your resume, applying for a specific job, creating a new profile on a job search website or talking to a mentor.

7.  Perfect your resume and other materials

As you revise your resume, be sure to include any new achievements or skills that could put you at the top of an employer’s list of job candidates.
Be sure to highlight transferable skills, Salemi said, such as the ability to lead with empathy, handle deadline-driven work and operate under a company’s budget. Looking at past performance reviews can help jog your memory, she suggested.
As news of layoffs continues to make headlines, keep in mind that new opportunities are still abundant.
“With the unemployment numbers at 3.7%, clearly there are still a lot of jobs that are out there,” Jenkin said.Don’t miss these stories from CNBC PRO: More

The bitcoin funds that launched Thursday are using a share redemption process that turns the underlying crypto into cash.
While the rules around share redemption do not directly affect the smaller trades that retail investors do in brokerage accounts, they come into play for the execution of larger trades made by institutions.

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The U.S. Securities and Exchange Commission pushed for bitcoin exchange-traded funds to have a key difference from major stock funds, and that decision’s effect on how the funds trade will only become clear over time.
The bitcoin funds that launched Thursday are using a share redemption process that turns the underlying crypto into cash. Most ETFs primarily use an in-kind redemption process, where the underlying asset does not have to be actually sold.

While the rules around share redemption do not directly affect the smaller trades that retail investors do in brokerage accounts, they come into play for the execution of larger trades made by institutions.
There is some concern that using the cash-only redemption model could make the plumbing of the ETFs less efficient.
“It could be that certain funds are capable of getting better execution prices than others. The other thing is that those trading costs, whether it be transaction costs or the market impact type costs that aren’t necessarily quantifiable, those costs are now borne by investors,” said Bryan Armour, director of passive strategies research for North America at Morningstar.
In-kind redemptions are typically used by major equity funds and, as crypto asset manager Grayscale pointed out in a presentation to the SEC, commodities funds. Using cash-only redemption could result in ETFs that have weaker liquidity and wider bid-ask spreads, Grayscale argued.
But Steven McClurg, chief investment officer at Valkyrie, said the situation may be more analogous to fixed income ETFs, where cash redemption is more common because the authorized market participants working with the funds may be more comfortable with that process.

“In this situation, there’s a lot of APs that don’t have the ability to transact in bitcoin. If it was an in-kind model, then it would throw a lot of advantage toward the APs that do have that ability. … We want as many market makers and authorized participants in these products as possible, because that makes for better markets,” McClurg said.
From a regulatory perspective, the decision to only allow cash redemptions simplifies the chain of custody for bitcoin and removes broker-dealers from the process, said Jeremy Senderowicz, an attorney and shareholder at Vedder Price, a firm that specializes in ETFs.
SEC Chair Gary Gensler said in a statement Wednesday that broker-dealers are still expected to follow best interest regulations with regard to crypto products, a potential sign that the SEC is wary of those firms becoming directly involved with these funds.
The good news for investors is that the cash-redemption process should not change the tax treatment of the funds, even though cash redemptions are more generally associated with mutual funds than ETFs. Many investors and financial advisors choose to use ETFs because the funds give them more control over when to create tax events.
“These things are taxed as grantor trusts. Consensus is that when an AP is redeemed for cash, the tax consequences only accrue to that AP. So it is not like cash redemptions on mutual funds and regular 40-Act ETFs where, to the extent that it’s a cash transaction, taxable income stemming from fund transactions is passed through to all the shareholders,” Senderowicz said.Don’t miss these stories from CNBC PRO: More

The Biden administration is forgiving student debt for some borrowers earlier than expected.
If you can answer “yes” to these three questions, you likely qualify.

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One of the major benefits of the Biden administration’s new student loan repayment plan is that it cancels the debt for certain borrowers — those who took out $12,000 or less — after a decade in repayment. Under the old plans, loan forgiveness didn’t come until 20 years or 25 years of payments.
On Friday, the administration announced some additional good news for these borrowers: It will move to cancel the debt for those eligible as soon as February, nearly six months ahead of schedule.

The U.S. Department of Education also said it will try to get as many qualifying borrowers to sign up for its Saving on a Valuable Education, or SAVE, plan, starting Friday, “particularly those who may be able eligible for immediate forgiveness.”
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“This action will particularly help community college borrowers, low-income borrowers, and those struggling to repay their loans,” President Joe Biden said in a statement. “And, it’s part of our ongoing efforts to act as quickly as possible to give more borrowers breathing room so they can get out from under the burden of student loan debt, move on with their lives and pursue their dreams.”
So who exactly qualifies for this relief? Here’s what we know.

How forgiveness under the SAVE plan works

When the Biden administration created its new SAVE plan, which it billed to student loan borrowers as “the most affordable repayment plan ever created,” it offered more favorable terms to certain people.

While the usual timeline for loan forgiveness would be 20 years or 25 years, those who took out $12,000 or less in their undergraduate or graduate postsecondary studies would get any remaining debt erased after just a decade.
As of early January, 6.9 million borrowers were enrolled in the new SAVE plan, according to the Education Dept. People were first able to sign up for the plan last August.

Due to the timeline of regulator changes, however, some of the provisions of the new program weren’t expected to go into effect until this summer. Those include the reduction of monthly payments for undergraduate borrowers from 10% of discretionary income to 5%, and the shortened timeline to forgiveness for those with small balances.
The latter benefit is what the Biden administration is implementing earlier, promising eligible borrowers the relief as soon as next month.

Which borrowers may benefit from early forgiveness

If you can answer “yes” to these three questions, you likely qualify:

Are you enrolled in the SAVE plan?
Did you borrow $12,000 or less in student loans?
Have you been in repayment for a decade or longer?

If you’re not currently signed up for the SAVE plan, experts recommend you do so as soon as possible to expedite your forgiveness. Months during the pandemic-era payment pause count on the 10-year timeline, whether or not you were paying down your student debt.Don’t miss these stories from CNBC PRO: More

The Biden administration announced on Friday it would soon begin forgiving the student loans of borrowers who have been in repayment for a decade or more and originally took out $12,000 or less.
To qualify for the relief, borrowers will also need to be enrolled in administration’s new Saving on a Valuable Education, or SAVE, plan.
Borrowers could see the relief as early as next month.

US President Joe Biden speaks at Montgomery County Community College in Blue Bell, Pennsylvania, on January 5, 2024.
Mandel Ngan | AFP | Getty Images

The Biden administration announced on Friday it would soon begin forgiving the student loans of borrowers who have been in repayment for a decade or more and originally took out $12,000 or less.
To qualify for the relief, which could come as early as next month, borrowers will also need to be enrolled in the administration’s new Saving on a Valuable Education, or SAVE, plan.

“Borrowers enrolled in SAVE who are eligible for early forgiveness will have their debts cancelled immediately starting next month, with no action on their part,” the U.S. Department of Education said.
The Department also said it was kicking off an outreach and email campaign to get as many eligible borrowers as possible to sign up for its SAVE plan, so that they may benefit from this relief too. As of early January, 6.9 million borrowers were enrolled in what the administration has billed to student loan borrowers as “the most affordable repayment plan ever created.”
“Today’s announcement will help struggling borrowers who have been making loan payments for years, including many who never graduated from college,” said Under Secretary James Kvaal said in a statement. “Giving borrowers with smaller loans a faster path to being debt free will help many borrowers avoid financial distress and have peace of mind.”
Under the SAVE plan, the usual timeline for student loan borrowers to get forgiveness is 20 years or 25 years. The 10-year period applies to those who took out $12,000 or less in undergraduate or graduate postsecondary studies. More

A Vanguard spokeswoman told CNBC that the asset management giant has no plans to create a bitcoin ETF of its own, or to even offer funds from other issuers on its trading platform.
Vanguard is one of two dominant players in the U.S. ETF market.
Its chief rival BlackRock has entered the bitcoin space, with the iShares Bitcoin Trust (IBIT) launching Thursday.

Pavlo Gonchar | Lightrocket | Getty Images

More than a dozen financial firms are involved in new bitcoin exchange-traded funds that began trading Thursday, but one of the biggest fund issuers and money managers in the world still won’t touch cryptocurrency.
A Vanguard spokeswoman told CNBC that the asset management giant has no plans to create a bitcoin ETF of its own, or to even offer funds from other issuers on its trading platform.

“While we continuously evaluate our brokerage offer and evaluate new product entries to the market, spot Bitcoin ETFs will not be available for purchase on the Vanguard platform. We also have no plans to offer Vanguard Bitcoin ETFs or other crypto-related products,” the statement said.
“Our perspective is that these products do not align with our offer focused on asset classes such as equities, bonds, and cash, which Vanguard views as the building blocks of a well-balanced, long-term investment portfolio,” the statement continued.
Vanguard is one of two dominant players in the U.S. ETF market. Its chief rival BlackRock has entered the bitcoin space, with the iShares Bitcoin Trust (IBIT) launching Thursday.
Vanguard, headquartered just outside Philadelphia, has earned a reputation for being a low cost, and more conservative investment manager. Under its founder, Jack Bogle, Vanguard helped to drive down costs for investors starting in the 1970s by introducing passive stock index funds that tracked broader markets and, on average, outperformed highly paid active managers. It also constantly lowered its fees.
Bogle died in 2019 and Vanguard now oversees more than $8 trillion in assets but still operates using many of its founder’s more cautious beliefs.Don’t miss these stories from CNBC PRO: More

The U.S. Securities and Exchange Commission on Wednesday approved the first U.S. spot bitcoin exchange-traded funds.
However, bitcoin can be volatile and it’s important to consider your risk tolerance and goals before adding to your portfolio, experts say.

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The U.S. Securities and Exchange Commission on Wednesday approved the first U.S. spot bitcoin exchange-traded funds. But experts urge caution before piling into the long-awaited ETFs.
The agency signed off on 11 bitcoin ETF applications, including funds from BlackRock, Fidelity, Ark Invest, WisdomTree and Grayscale. The new investment provides more access to everyday investors.

“It’s a big step forward for bitcoin,” said Bryan Armour, director of passive strategies research for North America at Morningstar, who has analyzed the new assets. But there are things to consider before rushing to purchase bitcoin ETFs.
“Fear of missing out is a poor investment strategy,” he added.
The SEC decision was highly anticipated, and the price of bitcoin briefly topped $49,000, the highest level since December 2021, as the first bitcoin ETFs began trading Thursday.

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Bitcoin remains ‘highly volatile’

While the bitcoin ETF approval is a landmark event, it’s important to consider your goals and risk tolerance before purchasing, experts say.
“Bitcoin carries unique risks, and it’s highly volatile,” Armour said, noting its variability of returns has been significantly higher than the stock market over the past five years.

“When I started building a position, I bought at 1% [allocation] at a time and I’m maxing out at 3%,” said certified financial planner Ivory Johnson, founder of Delancey Wealth Management in Washington, D.C. He is also a member of CNBC’s Financial Advisor Council.
With a small bitcoin allocation in your portfolio, there’s room for significant upside potential while minimizing downside risk, he said.
“While we approved the listing and trading of certain spot bitcoin ETP [exchange-traded product] shares today, we did not approve or endorse bitcoin,” SEC Chair Gary Gensler said in a statement Wednesday. “Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”

‘Better than anything else on the market’

While bitcoin carries risk, if you want to add exposure, experts say the new bitcoin ETFs could be worth considering compared to owning bitcoin directly or bitcoin futures ETFs.
“These spot bitcoin ETFs are better than anything else on the market,” said Armour, referring to other bitcoin investing options. Of course, you should also consider where to buy assets and any custodian risks.
The new ETFs may be cheaper than previous fund options, such as the ProShares Bitcoin Strategy ETF (BITO) — the first bitcoin futures ETF, with an expense ratio of 0.95%. The Grayscale Bitcoin Trust (GBTC) charged 2.0% before converting to a spot bitcoin ETF, and now has fees of 1.5%.
If you’re unsure about purchasing bitcoin ETFs on the first day of trading, you can wait and see what happens, Armour said. The funds “gathering assets” are “more likely to stick around and have the cheapest trading costs,” he said.

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The five major GOP presidential candidates still in the race — Donald Trump, Ron DeSantis, Vivek Ramaswamy, Nikki Haley and Asa Hutchinson — all oppose student loan forgiveness.
“Why should a truck driver have to pay for somebody that got a degree in zombie studies?” DeSantis said at an Iowa event in early August. “It doesn’t make sense.”

Former South Carolina Governor Nikki Haley, Florida Governor Ron DeSantis and former biotech executive Vivek Ramaswamy pose together onstage at the third Republican candidates’ U.S. presidential debate of the 2024 U.S. presidential campaign hosted by NBC News at the Adrienne Arsht Center for the Performing Arts in Miami, Florida, U.S., November 8, 2023. 
Mike Segar | Reuters

Outstanding student loan debt in the U.S. exceeds $1.6 trillion, and burdens Americans more than credit card or auto loan debt. The average loan balance at graduation has tripled since the 1990s to $30,000 from $10,000. Additionally, about 7% of student loan borrowers are now more than $100,000 in debt.
Voters support forgiving at least some student loan debt by a 2-to-1 margin, according to a Politico/Morning Consult poll. Less than a third oppose the policy.
Here’s what the GOP presidential contenders say about student debt forgiveness.

Donald Trump

Former U.S. President and Republican presidential candidate Donald Trump campaigns in Mason City, Iowa, U.S. January 5, 2024. 
Rachel Mummey | Reuters

Former President Donald Trump has a long record of opposing debt cancelation. Trump also sided with the Supreme Court in its ruling striking down Biden’s plan.
“Today, the Supreme Court also ruled that President Biden cannot wipe out hundreds of billions, perhaps trillions of dollars, in student loan debt, which would have been very unfair to the millions and millions of people who paid their debt through hard work and diligence; very unfair,” Trump said at a campaign event in June 2023.

Ron DeSantis

Vivek Ramaswamy

In a written statement to CNBC last summer, the tech entrepreneur said America had a bad habit “of paying people to do the exact opposite of what we want them to do: More [dollars] to stay at home than to work, more [dollars] to be a single mother than married, more [dollars] for those who fail to repay loans than those who do.”
Ramaswamy added that the Supreme Court’s ruling to block forgiveness “helps reverse that trend.”

Nikki Haley

The former South Carolina governor and U.S. ambassador to the United Nations under Trump tweeted last June that “a president cannot just wave his hand and eliminate loans for students he favors, while leaving out all those who worked hard to pay back their loans or made other career choices.”
“The Supreme Court was right to throw out Joe Biden’s power grab,” Haley wrote.

Asa Hutchinson

A former governor of Arkansas, Asa Hutchinson, called Biden’s broad forgiveness plan “a misuse of executive authority,” in a 2022 statement.
“Shifting the burden from those who willingly took out a loan to all taxpayers is inconsistent with the American ideal of personal responsibility,” Hutchinson said.
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