What Are The Quarterly Tax Months | What Dates Are Federal Estimated Taxes Due

What Are The Quarterly Tax Months | What Dates Are Federal Estimated Taxes Due

The IRS requires certain taxpayers to make quarterly tax payments.  Being on top of this will help ensure you avoid paying unnecessary penalties for underpayment of taxes.  The article below discusses who needs to make payments, how to determine the amount, and the various payment options.

Who Must Make Estimated Quarterly Tax Payments?

Generally, self-employed individuals, sole proprietors, and anyone under withholding through their paycheck must make estimated quarterly payments.  C Corporations typically also need to make estimated quarterly payments.  These requirements vary based on how much you owe.

If you owe less than $1,000 on your return, you can wait until April 15th and pay your income tax in a lump sum.  Additionally, if it’s your first year due more than $1,000 in income tax, you can wait until April 15th.

If you owe more than $1,000 based on the previous year, you must make quarterly payments equal to 100% of the amount owed on the prior year’s return, or you may pay 90% of the current year’s tax liability.  You Must pay at least the smaller of those two amounts.

How to Determine Your Estimated Quarterly Payments?

To figure out your estimated quarterly tax payments, use the worksheet at Form 1040 ES (Estimated Tax for Individuals).

The worksheet will request your expected income for the upcoming tax year and guide you through the Social Security contributions and Medicare payments.  Next, the worksheet will guide you through several calculations related to credits and deductions.

Finally, you multiply that amount determined by 90% and divide it by four.  This is your quarterly estimated tax payment.

With Form 1040ES, you make equal payments four times a year.  If your income fluctuates, you may need to adjust your estimated payments.

How Can I Make MY Estimated Quarterly Tax Payments With Fluctuating Income?

The IRS allows you to adjust your estimated quarterly payments based on the income for each quarter.  It would help if you used the Annualized ES Worksheet (Worksheet 2-9) to calculate that.  This form requires the same information as Form 1040-ES; however, everything gets broken down quarterly rather than annually.

How Do I Make My Estimated Quarterly Tax Payments?

The IRS allows you to submit estimated quarterly tax payments in the following ways:

Pay Estimated Taxes by Mail

To make your estimated quarterly tax payments by mail, tear off the voucher at the bottom of Form 1040-ES and mail it to the IRS.  Include a check or money order for your payment.  You don’t have to include the worksheet with your calculations.  The form must be postmarked by the due date to be considered on time.  The address to mail the estimated payment is listed on page five of the 1040-es document.  The mailing address for the payment is determined based on your location.

Pay Estimated Taxes by Direct Debit

You can set up automatic payments from your bank account at IRS.gov/payments.  There is no fee for this service.

You Can Pay Estimated Taxes via the Electronic Federal Tax Payment System (EFTPS)

Using EFTPS, you can make quarterly payments via phone at 1-800-555-4477 or online.  You must have signed up for the service before you can make any payment through this system.

Pay by Credit Card

You can make direct payments to the IRS by credit card.  You can use any of the following to complete the payments.  OfficialPayments.com, payUSAtax.com,  or PAY1040.com. Each will charge a convenience fee for this service.

Pay by Mobile App

Utilizing the IRS2Go app, you can make payments using your mobile phone.  The app will allow you to set up a free Direct Debit payment.

Pay Estimated Taxes by Cash

You can make cash payments at specific participating retailers.  Currently, the publication only refers to specific participating 711 locations.  Payments must be under $1,000.

When Are Quarterly Estimated Tax Payments Due?

Payments for the January 1st to March 31st period are due April 15^th.   April 1st to May 31st, payments are due June 15^th.  June 1st to August 31st, payments are due September 15^th.  September 1st to December 31st, payments are due January 15^th of the following calendar year.

If any of these dates fall on a weekend or holiday, the payment would be due the next business day.

Here are the due dates for tax years 2023 through 2024.

Due Dates for 2023 Estimated Quarterly Tax Payments:

• Q1: Tuesday, April 18th 2023
• Q2: Thursday, June 15th, 2023
• Q3: Friday, September 15th, 2023
• Q4: Tuesday January 16th, 2024

Due Dates for 2024 Estimated Quarterly Tax Payments:

• Q1: Monday, April 15th, 2024
• Q2: Monday, June 17th, 2024
• Q3: Monday, September 16th, 2024
• Q4: Wednesday, January 15th, 2025

By filing your income tax return one or before the last day of January, you can skip the mid-January estimated payment.  Instead, you can make that payment and any remaining amount due on or before January 31st.

The due dates above only apply if filed on a calendar year basis.  Therefore, your estimated tax payment schedule would be completely different if you file on a fiscal year.