IRS Estimated Tax Payment Dates – Options to Pay, Late Penalties, Calculate Amount 

Self-employed individuals and those without regular tax withholding: the next IRS estimated tax payment deadline on January 15th, 2024. This installment covers income earned from September 1st to December 31st, 2023.

IRS Estimated Tax Payment Dates

The upcoming deadlines for IRS estimated tax payments are approaching. To ensure timely remittance and avoid potential penalties, please take note of the following crucial dates:

  • First Quarter: Due April 15th, 2024, covering income earned from January 1st to March 31st, 2024.
  • Second Quarter: Due June 15th, 2024, covering income earned from April 1st to May 31st, 2024.

Remember, proactive planning and adhering to these deadlines are essential for maintaining good standing with the IRS and maximizing your financial stability.

IRS Payment Schedule 

Calendar Year Taxpayers (January 1 – December 31):

  • 1st Quarter:
    • Due: April 15th, 2024
    • Covers income earned:January 1st – March 31st,2024
  • 2nd Quarter:
    • Due: June 15th, 2024
    • Covers income earned: April 1st – May 31st, 2024
  • 3rd Quarter:
    • Due: September 15th, 2024
    • Covers income earned: June 1st – August 31st, 2024
  • 4th Quarter:
    • Due: January 15th, 2025
    • Covers income earned:September 1st – December 31st, 2024

IRS Estimated Tax Payment Dates

Automatic Extension: You can automatically extend your filing deadline to October 15th by electronically filing Form 4868. You don’t need a reason, but you will still owe any taxes due by April 15th.

Alternative IRS Payment Options:

  • Lump Sum Payment: You can choose to pay your entire estimated tax liability in one go by April 15th of the following year.
  • Weekend/Holiday Dates: If a due date falls on a weekend or federal holiday, your payment is still considered timely if made by the next business day.
  • Late Payments: Missed deadlines can result in underpayment penalties and interest charges.
  • Safe Harbour Rule: To avoid penalties, ensure your estimated tax payments total at least:
    • 90% of your expected tax liability for the year.
    • 100% of your prior year’s tax liability (if your adjusted gross income for the prior year exceeded $150,000 for individuals or $300,000 for married couples filing jointly).

Special Cases:

While the standard quarterly schedule applies to most calendar-year taxpayers, two special groups have unique deadlines for estimated tax payments:

  1. Farmers and Fishermen:
  • If you’re a farmer or fisherman and at least two-thirds of your gross income comes from your profession, you have a single estimated tax payment due on January 16th of the following year. 
  1. Fiscal Year Taxpayers:
  • Different deadlines: If you operate on a fiscal year that isn’t the calendar year (e.g., July 1st to June 30th), your estimated tax payment deadlines will differ from the standard quarterly schedule.
  • Finding your deadlines: For specific due dates, consult IRS Publication 505, Tax Withholding and Estimated Tax. 
  • Planning: Estimate your annual income accurately, choose a payment schedule that aligns with your cash flow, and ensure your payments reach at least 90% of your expected tax liability to avoid penalties.

How to Make IRS Tax Payments?

There are some ways to make estimated tax payments:

  • Electronic Federal Tax Payment System (EFTPS): This is the IRS’s preferred method for making estimated tax payments. You can make payments online or by phone.
  • Direct Pay: You can schedule payments from your checking or savings account using Direct Pay.
  • Mail: You can send a check or money order with a Form 1040-ES voucher to the IRS mailing address specified for your region.
  • Credit or debit card: You can make payments using authorized credit or debit cards through Direct Pay or designated third-party processors.

How to Calculate Your IRS Payments?

1). Calculate your expected income for the year.

  • Include all sources, like wages, freelancing, investments, and rental income.

2). Subtract your estimated deductions and credits.

  • Common deductions include mortgage interest, student loan interest, and charitable donations.
  • Look for tax credits applicable to your situation.

3). Multiply the remaining amount by your tax bracket.

  • Use the IRS tax tables or online calculators to find your bracket.

4). Divide the result by four to get your quarterly estimated payment amount.

  • Alternatively, you can aim for 100% of your prior year’s tax bill for safe harbor.

Penalties for Late Filing IRS Tax

  • Failure to File Penalty: You will owe a penalty of 5% of your unpaid taxes for each month your return is late, up to a maximum of 25%.
  • Failure to Pay Penalty: If you owe taxes but don’t pay them by the deadline, you will owe a separate penalty of 0.5% of your unpaid balance for each month it’s late, up to a maximum of 25%.

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