Just when you thought your side hustle was the golden ticket to escaping Uncle Sam’s clutches, along come estimated tax payments, knocking on your door like an unwanted guest. These payments are like that persistent neighbor who insists on borrowing your lawn mower every few months—annoying but necessary. So, today, we’ll give you all the details about the 2024 estimated tax due dates. Read on to ensure you never miss a deadline and keep Uncle Sam happy (or at least off your back).
What are Estimated Tax Payments in the U.S.?
Think of estimated tax payments as paying your taxes in chunks throughout the year instead of all at once. You do this for the money you make that doesn’t have taxes automatically taken out, like when you’re self-employed, freelance, or earn extra income from things like dividends, capital gains, prizes, and other non-wage earnings.
Even if you have a regular job and get a W-2, you might still need to make estimated tax payments if the taxes taken out of your paycheck don’t cover everything you owe. The amount taken out of your paycheck depends on the info you gave your employer on your W-4 form.
Some states also want you to pay estimated taxes. Check your state’s tax department website for details because state rules and deadlines might be different from federal ones.
Who Needs to Make Estimated Tax Payments in 2024?
You are required to make estimated tax payments only if you have taxable income.
What Qualifies as Taxable Income?
Taxable income includes money you earn from jobs (like wages, tips, and bonuses). However, it can also include unemployment benefits, Social Security, or other retirement income.
When to Pay Estimated Taxes?
If you earn taxable income in August 2024, you don’t have to pay estimated taxes until September 16, 2024. You can pay the complete amount by September 15 or split it into two payments: one by September 16, 2024, and another in January 2025.
IRS Due Dates for 2024 Estimated Tax Payments
| Payment | When You Earned the Taxable Income | Due Date |
| 1st Quarterly Payment | Jan. 1 – Mar. 31, 2024. | April 15, 2024. |
| 2nd Quarterly Payment | April 1 – May 31, 2024. | June 17, 2024. |
| 3rd Quarterly Payment | June 1 – Aug. 31, 2024. | Sept. 16, 2024. |
| 4th Quarterly Payment | Sept. 1 – Dec. 31, 2024. | Jan. 15, 2025. |
How to Calculate Quarterly Estimated Taxes in 2024
Calculating your quarterly estimated taxes might seem like a lofty feat, but it’s doable with a bit of guidance. Here are two main methods:
- Estimate Based on 2023 Taxes
- Look at 2023 Taxes: Start by looking at how much you owed last year.
- Divide by Four: Take that total amount and divide it by four. For example, if you think you’ll owe $12,000 for 2024, you would pay $3,000 each quarter.
- When This Works Best: This method is excellent if your income is pretty stable throughout the year or if you have a good idea of what you’ll make.
- Estimate Based on Annual Earnings
- Look at Your Earnings So Far: Check how much you’ve earned during the year up to the current quarter.
- Estimate Your Total Annual Income: Predict what your total income will be for the entire year based on what you’ve earned so far.
- Calculate Quarterly Payments: Use the IRS worksheets to help you figure out your tax bill for the quarter based on your estimated annual income.
- When This Works Best: This is a suitable method if your income changes a lot during the year.
Steps to Follow
- Use IRS Form 1040-ES: This form helps you show your income estimate and project your tax liability.
- Check IRS Publication 505: This publication has all the rules and details you need.
- Adjust as Needed: If you find out later that you overestimated or underestimated your income, fill out a new Form 1040-ES for the next quarter. When you file your annual tax return, you may need to attach IRS Form 2210 to explain any differences in your payments.
Note: If things get confusing, it’s a good idea to talk to a tax expert.
Would You Like to Reduce Your Estimated Tax Payments Legally?
If you’ve had enough of giving too much of your hard-earned money to Uncle Sam and want to pay the absolute minimum you are required to pay in taxes, Tax Goddess can help you. We have helped our clients claim more than $1.47 BILLION in taxes! In fact, we are obsessed with identifying legal ways to help business owners like you keep more money in your pocket. So, if you are game for some serious tax savings, book a FREE consultation with the Tax Goddess Growth Team.
