ECNETNews reports that the IRS is issuing a crucial reminder for taxpayers: the deadline to submit the third quarter estimated tax payment is fast approaching on September 16, 2024. This deadline affects individuals including gig workers, retirees, sole proprietors, and S corporation shareholders who anticipate owing $1,000 or more in taxes for the current year.
Taxpayers residing in disaster-impacted regions across 17 states, Puerto Rico, and the Virgin Islands may be eligible for an extended deadline. For instance, taxpayers in Florida, Georgia, and South Carolina have until February 3, 2025, to fulfill their payment obligations, while those in areas like Arkansas and Texas will have until November 1, 2024.
Who Needs to Pay Estimated Taxes? Individuals should make estimated tax payments if they expect to owe at least $1,000 in taxes for 2024 after accounting for withholding and tax credits. Payments are necessary if withholding and credits account for less than 90% of the current year’s tax obligation or if they do not match 100% of the previous year’s tax return.
Payment Methods The IRS strongly encourages taxpayers to utilize electronic payment methods, such as IRS Direct Pay, debit or credit cards, or the Electronic Federal Tax Payment System (EFTPS). More information is available on the official IRS website.
Disaster-Area Extensions Taxpayers located in certain disaster-affected areas are granted extended deadlines for their estimated tax payments, with dates ranging from November 1, 2024, to February 3, 2025, depending on their specific location.
The IRS also emphasizes the importance of accurate income reporting, particularly for those who receive payment through various digital channels. Additionally, taxpayers should note that the final estimated tax payment for 2024 is due on January 15, 2025.
