June 17th – Estimated Tax Payment Due
The IRS issued a reminder that the 2nd quarter Estimated Tax Payment for 2024 is due on June 17th. According to the release, “Taxpayers making estimated tax payments should consider this deadline to avoid falling behind on their taxes and facing possible underpayment penalties.”
Avoiding an Underpayment Penalty
To avoid an underpayment penalty at tax time, taxpayers should pay most of their taxes during the year, owing less than a $1,000 when filing their return. Generally, for 2024 that means paying at least 90% of the tax owed on their 2024 return, or at a minimum 100% of the tax shown on their year 2023 tax return.
Exceptions to the Underpayment of Estimated Tax Penalty and special rules apply for some groups of taxpayers, such as farmers, fishermen, certain higher income taxpayers, casualty and/or disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year.
Uncertain of Amount Owed?
The use of the Tax Withholding Estimator by taxpayers will help ensure that the right amount of tax is being withheld from their paychecks or other income that is subject to withholding. Estimates provided are as accurate as the information entered by taxpayers.
This tool can help taxpayers avoid having too little tax withheld and facing an unexpected tax bill at tax time next year.
Estimated Tax Payment Due Dates for 2024
Keep in mind that third quarter payments are due September 16, 2024, and the final estimated tax payment for tax year 2024 will be due on January 15, 2025.
As always, should you have questions on this or other matters affecting you or your business, please call or email us to speak with a CPA today.
DISCLAIMER: The WM Update, WM Wednesday Wisdom, WM Daily Update, and other related communications are intended to provide general information, as of the date of this communication, and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.
For more information visit the IRS website.
