The IRS is sending out a friendly reminder about an important tax deadline coming up this month.
Mark your calendars for September 16! That’s when third-quarter estimated tax payments are due for individuals whose income isn’t subject to withholding. Remember, taxes need to be paid as you earn income during the year, either through employer withholding or estimated tax payments, known as pay-as-you-go taxes.
When you receive your paycheck, a portion is withheld by your employer to cover income tax, which they send directly to the IRS. However, if your withholding isn’t enough, or if you receive extra income from sources like interest, dividends, alimony, or self-employment earnings, you may need to make estimated tax payments.
Those typically making estimated payments include self-employed folks, retirees, investors, businesses, and corporations. There are four estimated tax payment deadlines each year, and September 16 is specifically for the third quarter. Don’t forget, the last payment for 2024 is due on January 15, 2025.
Who Should Pay on September 17?
- Owe at least $1,000 in taxes after subtracting your withholding and tax credits for 2024.
- Have withholding and tax credits that are less than the smaller of:
- 90% of your tax for 2024; or
- 100% of the tax shown on your complete 12-month 2023 tax return.
This deadline applies to most taxpayers, but if you’re in federally declared disaster areas, you have some extra time. This includes:
- Those in parts of Arkansas, Iowa, Mississippi, New Mexico, Oklahoma, Texas, and West Virginia, who have until November 1, 2024.
- Taxpayers in various locations, including parts of Florida, Georgia, Kentucky, and more, who have until February 3, 2025.
For easy filing, the IRS recommends paying online through your IRS Online Account, IRS Direct Pay, or using a debit/credit card. Prefer traditional methods? You can also send in checks or money orders payable to “United States Treasury.”