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2024 Estimated Payment Dates

The due dates for the estimated tax payments for the year 2024 are as follows:

  • April 15, 2024
  • June 17, 2024
  • September 16, 2024
  • January 16, 2025

You can generally avoid an IRS penalty for underpayment of estimated taxes if you pay at least 100% of the tax shown on your return for the previous year through withholding or estimated tax payments. This rule is designed to help taxpayers avoid penalties if their income fluctuates unpredictably during the year. However, there are some conditions and exceptions to keep in mind:

  • This strategy is particularly useful for taxpayers whose earnings are uneven throughout the year. By ensuring that you pay at least what you owed in taxes the previous year, you’re essentially using last year’s tax liability as a benchmark for avoiding penalties.
  • If your adjusted gross income (AGI) for the previous year was more than $150,000 ($75,000 if married filing separately), you may need to pay 110% of your previous year’s tax liability to avoid a penalty.
  • The rule applies to the total amount of tax you owe. So, if you opt to pay 100% of the previous year’s tax, these payments must cover your entire tax liability for the year.

It’s also important to remember that while paying 100% of the previous year’s tax liability can help avoid underpayment penalties, it may not always be the best strategy for minimizing your overall tax payments, especially if you expect significant changes in your income or deductions. Adjusting your estimated payments or withholding to more closely match your current year’s tax liability could result in a smaller tax bill or larger refund when you file your return.

You can make federal estimated payments by going to: https://www.irs.gov/payments/direct-pay

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For More Info: https://www.irs.gov/faqs/estimated-tax