The IRS reminds taxpayers that the deadline for submitting the third quarter estimated tax payment is approaching on September 16, 2024. This applies to individuals such as gig workers, retirees, sole proprietors, and S corporation shareholders who expect to owe $1,000 or more in taxes for the year.
Taxpayers affected by disasters in 17 states, Puerto Rico, and the Virgin Islands may qualify for a delayed deadline. Disaster-area taxpayers in places such as Florida, Georgia, and South Carolina have until February 3, 2025, to make their payments, while others in states like Arkansas and Texas have until November 1, 2024.
Who Needs to Pay Estimated Taxes? Taxpayers should make estimated payments if they expect to owe at least $1,000 in taxes for 2024 after subtracting their withholding and tax credits. Payments should be made if withholding and credits are less than 90% of 2024 taxes or 100% of their 2023 tax return.
Payment Methods The IRS encourages electronic payments through IRS Direct Pay, debit/credit cards, or the Electronic Federal Tax Payment System (EFTPS). Additional details can be found on IRS.gov/payments.
Disaster-Area Extensions Taxpayers in certain disaster-affected areas have extended deadlines to make their estimated tax payments, ranging from November 1, 2024, to February 3, 2025, depending on the region.
The IRS also advises taxpayers to ensure proper income reporting, particularly for those receiving payment through apps or online platforms, and reminds taxpayers that the final estimated tax payment for 2024 is due on January 15, 2025.
This article, "Third Estimated Tax Payment Deadline Nears" was first published on Small Business Trends
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