IRS Tax Payment Deadline 2024 – How to pay taxes online?

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IRS Tax Payment Deadline

The second quarter deadline for paying the estimated taxes you owed to the agency was 17 June 2024. The taxpayers can read the article to learn about the next quarter’s payment date and everything about the estimated tax for the new users.

IRS Tax Payment Deadline 2024

Eligible US people pay the estimated taxes every quarter based on their reported income for the period, which is not subject to withholding like a regular employee. The estimated tax includes almost any type of taxable income like capital gains, dividend income, etc.

The taxpayers make the estimated tax payments to always stay ahead of their tax game and avoid the consequences of paying penalties for late payments. The eligible taxpayers file their annual tax return too to determine & pay their exact balance tax or get reimbursement for the overpayment.

The taxpayers are required to pay the quarterly estimated tax by the deadlines. The deadline for each quarter estimated tax due for tax year 2024 was or is given below:

  • First Quarter (1 January to 31 March): 15 April 2024, where you can even pay the entire estimated tax based on your income for the year.
  • Second Quarter ( 1 April to 31 May 2024): 17 June 2024
  • Third quarter (1 June to 31 August 2024): 16 September 2024
  • Final Payment (1 September to 31 December 2024): 15 January 2025.

The IRS allows payment deadline extensions and postponement of filing to certain taxpayers who meet the disaster relief criteria. So, if you are a victim or affected by any disasters during the tax year, you contact the IRS to determine your eligibility for an extension of quarterly estimated tax payments.

Who should pay the IRS Estimated Taxes?

According to IRS guidelines, the income that is not withheld by any means is subjected to the estimated taxes. Normally, the employees have their regular paycheck withheld by the employer for taxes.

However, self-employed, freelancers, business owners, investors, etc. do not have their income subjected to any withheld making them eligible for paying the quarterly estimated taxes to the agency.

So, taxpayers who fulfill the below requirements need to pay the estimated taxes:

  • Taxpayers like S corporation shareholders, sole proprietors, and partners who expect to have a tax liability of $1,000 or more in their tax return need,
  • Businesses or corporations that owe $500 or more tax,
  • Taxpayers who have capital gain or dividend income, self-employed income, or other alternate situations that change the status of their income withholding

Exclusions:

  • You do not have to pay estimated taxes for 2024 if you were a resident alien or  US citizen for all of 2023 and had no tax liability for the 2023 tax year.

The taxpayers can use the IRS interactive tax assistant online tool, available on the online services of the IRS to determine their eligibility for the quarterly estimated taxes.

How to calculate your IRS-estimated tax payments?

The taxpayers can calculate their Estimated quarterly tax payments in the following two ways:

  • You can estimate your income based on your prior year: You take the amount you owed in the previous year to the IRS and divide that amount by 4, and you will get your estimated quarterly tax payments. This method is best for people who have earned a yearly stable income for more than 2 or more years.
  • Pay according to your quarterly earnings: You make payments based on your income in each quarter of the year. According to this method, the taxpayers would pay the first quarter taxes based on their earned income in the quarter, the second quarter paid the earnings of the first and second quarters, and follow the same pattern for the year.   This method is best for people whose income fluctuates throughout the year.

How do you pay the estimated taxes for 2024?

The eligible taxpayers pay the estimated tax through the pay-as-you-go system, meaning a payment system where bills are paid when they are due and goods & services are paid when they are purchased.

Taxpayers can follow the below ways to pay the estimated taxes to the IRS:

  • Online: You can pay the estimated tax bills through the Electronic Federal Tax Payment System (EFTPS), the fastest, most secure, and easiest way to make tax payments to the agency. You can make payment via your online account, digital wallet, credit/debit cards,  or IRS Direct Pay from anywhere at any time with an internet connection.  You can also use the IRS2Go mobile application to use the online services of the IRS.
  • By Mail: You can mail the Form 1040-ES to the IRS with relevant documents.

What happens if you fail to pay the payment by the deadline?

Taxpayers who fail to pay the estimated taxes either by withholding or estimated tax payments will have to pay a penalty for underpayment. According to the IRS, the underpayment interest rate is 8% for individuals and 7% for corporations.

The agency multiplies the unpaid tax amount by the quarterly interest rate to calculate the underpayment penalty.

The underpayment penalty is exempted when you meet the following conditions:

  • You are a retiree or became disabled during the tax year or previous year and you can’t pay the estimated payments. Due to the above circumstance, you unwillingly neglect the estimated taxes.
  • You didn’t make a payment due to some unexpected events, disasters, casualties, or any uncalled circumstances.

Taxpayers can avoid the penalty, by paying 90% of their estimated tax for 2024 or a minimum of 100% of taxes shown in the 2023 tax return. Taxpayers must pay the estimated taxes on time to avoid the penalty and legal consequences.

The deadline for each quarterly estimated tax payment mentioned above, you must mark the dates on your calendar to make sure you fulfill all your tax duties on time. You can use Form 1099-K to keep a record of your side-hustle income or non-withholding income.

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