News on IRS Estimated Tax Payments: Key Dates and Guidelines
As the IRS confirms, the third-quarter estimated tax deadline for 2024 is rapidly approaching on Sept. 16. Missing this deadline could lead to significant penalties. Taxpayers are advised to make estimated payments if they are projected to owe at least $1,000 after subtracting withholdings and credits from their 2024 income.
Identifying Who Needs to Make Estimated Payments
According to the IRS, follow this general rule of thumb: make estimated tax payments if your anticipated tax liability exceeds $1,000, or if you fail to meet safe harbor requirements. The safe harbor rules state that you can avoid penalties if you pay at least 90% of your 2024 tax liability or 100% of your taxes from 2023 - whichever is less.
Important Payment Deadlines to Remember
For 2024, the quarterly estimated tax deadlines are:
- April 15
- June 17
- Sept. 16
- Jan. 15, 2025
Failure to pay these amounts on time may incur a timing penalty, as payments are required as income is earned.
Recommended Payment Methods
To make payments more manageable, the IRS suggests utilizing electronic methods. Options include using an online account, IRS Direct Pay, or the U.S. Department of the Treasury’s Electronic Federal Tax Payment System.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.