When Are Estimated Tax Payments Due in 2024? (2024)

Making estimated tax payments is important since the U.S. tax system operates on a "pay-as-you-go" basis. This means the IRS expects you to pay a portion of your income as soon as you earn it.

As an employee, as many know, the government automatically withholds taxes from your paycheck based on your Form W-4. Also, retirees may have taxes taken from their Social Security payments and retirement plan distributions.

However, what if you are self-employed or don't have taxes withheld from other sources of taxable income, such as dividends, capital gains, interest, rental income, or alimony? In that case, you are responsible for making estimated tax payments to the IRS.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
When Are Estimated Tax Payments Due in 2024? (1)

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

What are estimated tax payments?

Estimated tax payments are the taxes you pay to the IRS throughout the year to account for income you've earned that wasn't subject to tax withholding.

  • When paying estimated taxes, you usually make four equal payments and follow the IRS's yearly schedule. (More on that below.)
  • Estimated tax payments are commonly referred to as "quarterly" payments, even though they might not necessarily be three months apart or cover three months of income.

Due dates for estimated taxes 2024

The table below shows the payment deadlines for 2024. (Note that some people will have extended IRS tax deadlines for estimated tax payments due to residing or working in IRS-designated disaster areas.)

Due dates for 2024 estimated tax payments
PaymentWhen Income Earned in 2023Due Date
1st PaymentSept. 1 to Dec. 31, 2023Jan. 16, 2024
2nd PaymentJan. 1 to March 31, 2024April 15, 2024
3rd PaymentApr. 1 to May 31, 2024June 17, 2024
4th PaymentJune 1 - Aug. 31, 2024Sept. 16, 2024

Sometimes, you can deviate from the set estimated tax payments schedule by following specific rules.

For example, if you pay all your estimated taxes for 2024 before Tax Day, April 15, 2024, you will not have to make additional tax payments for the rest of the year.

Additionally, if you submit your 2023 federal income tax return by Jan. 31, 2024, and pay the entire balance due at that time, you won't have to make the final estimated payment for 2023, which would normally be due on Jan. 16, 2024.

Who should make estimated tax payments?

You only need to make estimated tax payments if you have taxable income.

Note: The most common taxable income for many people is earned income (e.g., from wages, tips,bonuses, etc.). However, some people are surprised that they may have to pay taxes on unemployment income, taxes on Social Security, or other taxes on other retirement income.

But for estimated taxes, suppose you have taxable income in Aug. 2024. In that case, you don't have to make an estimated tax payment until Sept. 16, 2024. You can pay the entire estimated tax by the Sept. 15 due date or pay it in two installments by Sept. 16, 2024, and January 2025.

If more than two-thirds of your income is from farming or fishing, you only need to make one estimated tax payment for the 2023 tax year, due by Jan. 16, 2024. If you meet the farming/fishing income threshold and file and pay your taxes by Mar. 1, 2024, you don't need to make any estimated payments.

How do you calculate estimated taxes?

To calculate your estimated tax payments, use Form 1040-ES. First, determine your expected adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year. Then follow the instructions on the Form 1040-ES worksheet to assist you in this process.

You can also refer to your previous year's tax return as a general guide. Your goal is to estimate your expected annual income.

If you overestimated your tax, you can adjust your estimated tax payments using another Form 1040-ES worksheet. You can also recalculate your tax estimate if your personal circ*mstances change or if any tax law changes impact your tax liability for the year.

How to pay estimated quarterly taxes

To pay estimated taxes, use Form 1040-ES. You can pay by check, cash, money order, credit card, or debit card.

There are also online payment options like the Electronic Federal Tax Payment System (EFTPS). The instructions for Form 1040-ES explain the different payment methods.

Penalties for not making estimated taxes

Failing to pay enough taxes during the year can lead to IRS penalties. Even if you anticipate a refund when you eventually file your return, the IRS may penalize late or insufficient estimated tax payments.

There are some potential exceptions to tax penalties, however. For example, if you've experienced an unexpected event like a casualty, disaster, or unusual circ*mstance. Or if you're at least age 62, retired, or have become recently disabled, and your underpayment resulted from a "reasonable cause" and not "willful neglect."

Since these exceptions are limited, aim to pay most of your 2023 tax liability through withholding or estimated tax payments.

State estimated taxes

If you live in a state with income tax, remember that you might need to make estimated tax payments to your state as well.

The due dates for state payments may differ from the federal dates, so check with your state's tax agency.

Related Content

  • What's the 2023 Standard Deduction?
  • 2023-2024 Federal Tax Brackets and Rates
  • What is Taxable Income?
When Are Estimated Tax Payments Due in 2024? (2024)

FAQs

When Are Estimated Tax Payments Due in 2024? ›

Typically, freelancers, those who are self-employed, businesses, and some investors have to pay quarterly taxes. W-2 workers whose tax liability is not fully covered by their withholdings may also need to pay estimated taxes. In 2024, estimated tax payments are due April 15, June 17, and September 16.

When to pay quarterly taxes in 2024? ›

Frequently Asked Questions
Payment PeriodDue Date
January 1 - March 31, 2024April 15, 2024
April 1 - May 31, 2024June 17, 2024
June 1 - August 31, 2024September 16, 2024
September 1 - December 31, 2024January 15, 2025*

When should I start making estimated tax payments? ›

For most people, the due date for the first quarterly payment is April 15. The next payments are due June 15 and Sept. 15, with the last quarter's payment due on Jan. 15 of the following year.

What is the 110% rule for estimated tax payments? ›

If your previous year's adjusted gross income was more than $150,000 (or $75,000 for those who are married and filing separate returns last year), you will have to pay in 110 percent of your previous year's taxes to satisfy the "safe-harbor" requirement.

Can I pay estimated taxes after January 15th? ›

Share: You can postpone the quarterly Jan. 15 estimated tax payment until Jan. 31 if you file your return and make any necessary payments by that date.

What happens if I miss a quarterly estimated tax payment? ›

If you miss the deadline for a quarterly tax payment, the IRS automatically charges you 0.5% of the amount that you didn't pay for each month that you don't pay, up to 25%. To find out how much you owe up to this point, you can use a tax penalty calculator.

What are the due dates for estimated tax payments 2024-2023? ›

Due dates for estimated tax payments 2024
PaymentWhen Income Earned in 2023Due Date
1st PaymentSept. 1 to Dec. 31, 2023Jan. 16, 2024
2nd PaymentJan. 1 to March 31, 2024April 15, 2024
3rd PaymentApr. 1 to May 31, 2024June 17, 2024
4th PaymentJune 1 - Aug. 31, 2024Sept. 16, 2024

At what income should I pay quarterly taxes? ›

Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.

Is it OK to pay estimated taxes early? ›

Whatever amount you estimate you will owe for the year, you should pay it early in the year and get it out of the way. Consider 25% for the first payment and 50% for the second payment in order to have a large chunk of debt taken care of in advance, or ahead of a downturn in business.

Is it okay to pay all estimated taxes at once? ›

Answer: Generally, if you determine you need to make estimated tax payments for estimated income tax and estimated self-employment tax, you can make quarterly estimated tax payments or pay all of the amount due on the first quarterly payment due date.

How to determine estimated taxes for 2024? ›

Use Form 540-ES, Estimated Tax for Individuals, and the 2024 California Estimated Tax Worksheet, to determine if you owe estimated tax for 2024 and to figure the required amounts. Estimated tax is the tax you expect to owe in 2024 after subtracting the credits you plan to take and tax you expect to have withheld.

Do I have to pay the exact amount on estimated taxes? ›

You must pay your estimated tax based on 90% of your tax for the current tax year.

What triggers the underpayment penalty? ›

If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax.

What if you pay estimated taxes a day late? ›

Once a due date has passed, the IRS will typically dock 0.5% of the entire amount you owe. For each partial or full month you don't pay the tax in full, the penalty increases. It's capped at 25%.

How do I prove I made estimated tax payments? ›

To determine estimated taxes paid, you can first check your bank account or credit card records. Look at the statements for the months you made payments. You can also get a transcript of your past tax returns online from www.IRS.gov/Individuals/Get-Transcript.

Should I pay estimated taxes late? ›

The longer you go without paying, the more you will end up owing the IRS. You should pay your late quarterly estimated taxes as soon as possible.

What months do I pay quarterly taxes? ›

When to Pay Estimated Tax
Payment PeriodDue Date
January 1 – March 31April 15
April 1 – May 31June 15
June 1 – August 31September 15
September 1 – December 31January 15* of the following year. *See January payment in Chapter 2 of Publication 505, Tax Withholding and Estimated Tax
2 more rows

When should you file quarterly taxes? ›

Quarterly tax payments are due every 3 months. As the IRS explains, a year has four payment periods with the following quarterly payment due dates: April 15, June 15, Sept. 15 and Jan. 15.

What tax changes are coming in 2024? ›

For tax year 2024, the standard deduction for married couples filing jointly rises to $29,200, an increase of $1,500 from 2023. For single taxpayers, the standard deduction rose to $14,600, a $750 increase from the previous year.

Is it better to pay taxes quarterly or at the end of the year? ›

Having enough tax withheld or making quarterly estimated tax payments during the year can help you avoid problems at tax time. Taxes are pay-as-you-go. This means that you need to pay most of your tax during the year, as you receive income, rather than paying at the end of the year.

Top Articles
Latest Posts
Article information

Author: Delena Feil

Last Updated:

Views: 5765

Rating: 4.4 / 5 (65 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Delena Feil

Birthday: 1998-08-29

Address: 747 Lubowitz Run, Sidmouth, HI 90646-5543

Phone: +99513241752844

Job: Design Supervisor

Hobby: Digital arts, Lacemaking, Air sports, Running, Scouting, Shooting, Puzzles

Introduction: My name is Delena Feil, I am a clean, splendid, calm, fancy, jolly, bright, faithful person who loves writing and wants to share my knowledge and understanding with you.