Have you missed the latest IRS reminder? In case you did, the final 2024 quarterly estimated tax payment is due on January 15, 2025. That is why the Internal Revenue Service is encouraging all taxpayers who did not pay enough or paid too little tax in 2024 to make a 4th quarter estimated tax payment.
Make sure you make it before January 15 to avoid any unpleasant delays or slips. Of course, you could also make the 4th quarter estimated payment on January 15, 2025, but there is no need to wait for so long unless you are waiting for some cash to get it sorted.
Why is the IRS reminding taxpayers to make these payments?
As a matter of fact, hundreds of American taxpayers often overlook quarterly estimated payments to the IRS. They are often done by either making quarterly estimated payments or by withholding tax from paychecks.
Therefore, if these payments are not made, taxpayers may have to face a penalty. Thus, it is not a good idea to forget about the quarterly payments because you could end up having a fee or an unwanted penalty.
Do not forget that income taxes are pay-as-you-go. Actually, this means taxpayers must pay taxes throughout the year. That is when you earn or receive income, you must pay this tax.
IRS reminds who needs to make a payment
Keep in mind that taxpayers who either receive or earn income that is not subject to tax withholding, take for example, independent contractors and self-employed people. They should pay their taxes quarterly to the Internal Revenue Service.
Besides, the IRS reminds taxpayer who owed on their most recent tax return may find that they owe again when they file the following one. Thus, they should take it into account.
In this way, they can make estimated quarterly payments to avoid potential tax bills or even a penalty. This usually happens when you live in a two-wage-earner household, when you have a complex tax situation, or when you have failed to increase your withholding among other reasons.
