IRS Alert January 15 is the Deadline for Your Final 2024 Tax Payment

As the new year begins, it’s crucial to remember one important date: January 15, 2025. This is the deadline to submit your final quarterly estimated tax payment for the 2024 tax year. If you’re among the many taxpayers who earn income not subject to withholding, such as self-employment earnings, rental income, or investment gains, this payment ensures you remain on track with your tax obligations.

Who Needs to Make an Estimated Tax Payment?

The IRS requires estimated tax payments if you expect to owe at least $1,000 in taxes after subtracting withholding and refundable credits. This applies to individuals, including sole proprietors, partners, and S corporation shareholders. Missing this deadline could result in penalties or additional interest charges, so it's essential to act promptly.

How to Make Your Payment:

There are several convenient ways to ensure your payment is made securely and on time:

1. Online Payments: Use the IRS Direct Pay system for a quick and secure transaction from your bank account. Access the Electronic Federal Tax Payment System (EFTPS) to schedule and track your payments.
2. Mail a Payment: Send a check or money order payable to the United States Treasury, along with a completed Form 1040-ES voucher. Ensure your payment is postmarked by January 15.
3. Work with a Tax Professional: Unsure how much to pay? A tax professional can calculate your estimated taxes, ensuring accuracy and compliance.

Why Meeting the Deadline Matters

Timely payments help you avoid unnecessary penalties and interest, ensuring a smoother tax filing experience when April comes around. Staying proactive with estimated taxes also makes it easier to manage your annual tax burden.

What Happens If You Overpay?

If your estimated payments exceed your actual tax liability, the IRS will refund the excess or apply it to your future tax payments. It’s always better to overpay slightly than risk underpaying.

Need assistance?

Taxes can be complex, but you don’t have to navigate them alone. Hire the best tax professional or accountant to make sure you’re meeting all requirements and maximizing your financial strategy.

Don’t wait; submit your payment today to start the new year stress-free and prepared. For more details, visit the IRS website or reach out to your tax advisor.