Third Quarter Estimated Taxes Due September 15th
We are approaching the last four months of 2024 and for those of you paying estimated taxes, your 3rd quarter payment is due September 15th.
If you are new to making quarterly tax payments, keep in mind that taxes must be paid through either withholding or estimated tax payments as income is earned. For those whose main source of income is salary or pension, your withholdings may be sufficient and estimated tax payments will not be required. If you have significant earnings on which tax is not withheld (interest, dividends, capital gains, alimony or self-employment income) you will likely need to make estimated tax payments to avoid underpayment of estimated tax penalties.
Estimated taxes must be paid if they expect to have a tax liability of $1,000 or more when you file your return.
Tax Withholding Estimator
In order to avoid underpayment penalties, the IRS provides a free tool to estimate your federal income tax withholding. To use the tool, click here.
Paying Your Taxes
The IRS provides many payment options. You may pay online from your bank account, debit card, credit card or digital wallet. For more information on how to make a payment online, click here.
If you prefer not to pay online, additional options to pay include same day wire, check, or money order.
Keep in mind, if you do not pay taxes “as you earn,” you will not only have a large tax bill facing you on Tuesday, April 15, 2025, but also penalties and interest for underpaying your tax throughout the year.
Questions?
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
