When are quarterly taxes due in 2024?

You probably have April 15th etched into your brain as the date your taxes are due. But if you’re self-employed, self-employed, or a schedule worker, you may need to file estimated taxes each quarter. Sometimes these are called quarterly tax payments.

Not sure when your quarterly taxes are due or if you need to file them? We’ll walk you through the rules so you can stay on the right side of the Internal Revenue Service.

What are the estimated tax payments and when are they due?

Estimated tax payments are made periodically to the IRS for income not subject to regular withholding.

The US tax system is pay-as-you-go. Essentially, taxpayers are expected to pay income taxes as they are received, rather than waiting until the April 15 due date.

When you have a traditional W-2 job, your employer withholds taxes from your wages, so you don’t have to worry about making payments to the IRS throughout the year. But taxes aren’t automatically withheld from certain sources of income, which is where estimated taxes come into play.

You may have to pay estimated taxes if you have the following types of taxable income:

However, if you also earn a salary or have pension income and have enough money withheld to cover the tax liability from your other sources of income, you may not be required to make estimated tax payments.

Generally, you will have to make estimated tax payments if both of the following are true:

1. You expect to owe the IRS at least $1,000 after withholdings and any refundable AND

2. You expect the amount withheld for taxes from your paychecks (plus any refundable tax credits) to add up to the lesser of 90% of your total income tax bill for this year OR 100% of your tax bill for the previous year. But if your adjusted gross income (AGI) was more than $75,000 (if you’re filing single) or $150,000 (if you’re married filing jointly), you’ll have to withhold 110% of last year’s tax bill to avoid a possible penalty.

Although estimated tax payments are sometimes referred to as quarterly taxes because they occur about four times a year, the name is a bit of a misnomer. The pay periods covered by estimated fees do not come every three months; instead, they range from two to four months, as you’ll see in the chart below.

Estimated quarterly tax payment deadlines fall on the 15th of the month in January, April, June and September. If the deadline falls on a weekend or public holiday, they are due on the next business day.

You can also make more frequent estimated tax payments if that makes your budget easier. For example, you could pay taxes monthly or weekly to avoid having to send the IRS a large chunk of change every few months.

How to calculate estimated fees

You can use it to calculate how much you owe in estimated taxes. The form includes a worksheet to help you calculate the amount owed based on your estimated adjusted gross income for the year as well.

There are two main ways you can estimate how much you owe:

• Based on income from the previous year: If you owed $10,000 in taxes last year and expect your income and tax liability to be similar this year, you could pay $2,500 each pay period. This method is usually best for those whose income does not fluctuate much from month to month or year to year.

• Based on your income for the pay period. You can choose to calculate estimated taxes based on your earnings for the period. Let’s say you made $20,000 between June and August and you have 20%. You can pay $4,000 in estimated taxes based on your tax liability for those three months. This approach is often best for those whose income fluctuates seasonally or from year to year.

Note that if you own a business or are a freelancer or freelancer, you will need to consider . Basically, with a W-2 job, both you and your employer typically each pay 7.65% of your wages for Social Security and Medicare taxes. When you’re self-employed, however, you’re responsible for both the employee and employer portions of this tax, or 15.3% of total pay for most people.

If you find you overpaid your estimated taxes when you file your return for the calendar year, you can get the extra money as . You can also apply the surcharge to a future estimated tax bill.

How to pay estimated fees

There are several ways to make estimated tax payments, including:

• Online using your IRS account at

• Using the Electronic Federal Tax Payment System (EFTPS)

• Same day bank transfer through your bank

• Electronic funds transfer

• By telephone

• Sending a check or money order by mail

• With cash at IRS retail partners

You can also use these methods to make payments when you file your federal tax return on tax day.

What is the penalty for not paying quarterly taxes?

If you don’t pay quarterly taxes as required, you’ll owe interest on the balance owed, in addition to an IRS underpayment penalty. This penalty is usually 0.5% of your tax bill for each month (or partial month) that the balance is unpaid, although the penalty is capped at 25% of the amount you owe.

You may be able to avoid the penalty in certain situations, such as:

• You were unable to pay due to a casualty, disaster or other unusual circumstance.

• You retired after reaching age 62 or became disabled during the year estimated payments were required.

If you can’t afford to make your estimated tax payments, you should pay what you can to minimize interest and penalties. Try to increase the amount you set aside for taxes so you can pay your bill as soon as possible.

If you still owe more than you can afford when you file your tax return for the year, make sure you file your taxes on time anyway. Penalties for failure to file a return are much greater than penalties for non-payment or failure to pay. You can , which may give you an extension or allow you to pay your tax bill in installments.

Frequently Asked Questions

Are quarterly IRS payments required?

You are generally required to make quarterly payments if you expect to owe at least $1,000 for the tax year after withholdings and refundable credits. Because self-employment income is usually not subject to withholding, you are often required to make quarterly tax payments if you are a small business owner or independent contractor. However, if your primary source of income is a W-2 job, you probably aren’t required to pay quarterly taxes.

Will I get in trouble if I don’t pay estimated taxes?

You’ll owe interest and penalties if you don’t pay estimated taxes as required, so it’s important to set aside money for federal income taxes throughout the year if you have non-withholding income.

How do I know if I have to pay estimated taxes?

Generally, you must pay estimated taxes if you expect your tax bill to exceed $1,000 for the year after withholdings and refundable tax credits. If you are self-employed, carry out contract activities (such as self-employment or working) or have substantial income from capital gains, dividends or interest, there is a good chance you will need to pay estimated taxes.