Don’t miss this date, because you could have severe problems with the Internal Revenue Service (IRS). The federal tax agency once again reminded, and very vehemently, the taxpayers reached that June 17 is the deadline for submitting estimated taxes corresponding to the second quarter of 2024.
This reminder is intended for those whose income is not subject to withholding. What are these categories of workers? We are going to tell you below.
IRS Deadline for Taxpayers without Income Withholding
The government agency emphasizes once again that tax payments must be made on time as income is generated.
This process can be carried out through employer withholdings or through estimated tax payments, also known as quarterly payments. Employers are responsible for withholding a portion of the employee’s wages for income tax and submitting it to the IRS.
However, there are workers who do not have this withholding facility. But, there are cases in which salary withholdings may be insufficient. This includes income from interest, dividends, alimony, self-employment, capital gains, awards and recognitions. In these situations, taxpayers must make estimated quarterly payments to the IRS. Affected groups include self-employed workers, retirees, investors, businesses and corporations.
Payment Forms and Methods Suggested by the IRS
For those who must comply with this obligation, the IRS offers several options for making their tax payments. The agency recommends, in the first instance, the use of electronic methods because they are safe, fast and easy to use, since the majority of taxpayers already have them.
They can use their IRS online account or the Direct Pay service to make payments directly from their bank accounts.
Alternatively, it is possible to pay by credit or debit card, or via a digital wallet. It is worth mentioning that payment processors may apply fees for these transactions. Another option available is the Electronic Federal Tax Payment System (EFTPS), designed to facilitate estimated payments.
Payment Options by Mail, Accepted by the IRS
For those who prefer not to use online methods, sending checks or money orders payable to the “United States Treasury” is permitted. It is crucial to ensure these payments arrive on time to avoid penalties.
If you don’t pay the IRS, things can get serious
The IRS warns that failure to make sufficient payments by due dates may result in penalties. To avoid this, taxpayers should aim to pay the majority of their taxes throughout the year, either through withholding or estimated payments. The agency advises that when filing the annual return, the amount owed does not exceed $1,000.
For the year 2024, the IRS specifies that taxpayers must pay at least 90% of the tax due on their 2024 return, or at least 100% of the tax shown on their 2023 return.
