Estimated Tax Payments 2nd Quarter 2024Deadline 17 June
What is Estimated Tax?
Estimated tax is for income not subject to withholding, such as self-employment earnings, interest, dividends, rents, alimony, unemployment compensation, and the taxable part of social security benefits. If voluntary withholding is not elected, estimated tax payments should be made.
Who Must Pay Estimated Tax?
U.S. citizens and resident aliens
Residents of U.S. territories
Nonresident aliens using Form 1040-ES (NR)
General Rule
You must pay estimated tax for 2024 if:
You expect to owe at least $1,000 in tax for 2024 after subtracting withholding and refundable credits.
Your withholding and refundable credits are less than:
90% of the tax shown on your 2024 return, or
100% of the tax shown on your 2023 return (special rules for farmers, fishermen, and higher income taxpayers).
Special Rules
Farmers and Fishermen: Use 66⅔% instead of 90%.
Household Employers: Include household employment taxes if federal income tax is withheld from other income or if estimated tax payments are required to avoid penalties.
Higher Income Taxpayers: If AGI for 2023 was more than $150,000 ($75,000 if married filing separately), use 110% instead of 100%.
Increase Your Withholding
Adjust your Form W-4 or use Form W-4P/W-4V/W-4R for other income sources to increase withholding and possibly avoid estimated tax payments.
Payment Due Dates for 2024
1st payment: April 15, 2024
2nd payment: June 17, 2024
3rd payment: September 16, 2024
4th payment: January 15, 2025 (unless you file your 2024 tax return by January 31, 2025, and pay the balance due).
Making Payments
Online: Through IRS.gov/Payments or IRS2Go app.
Phone: Using debit or credit card service providers.
Mail: With a check or money order using the estimated tax payment voucher.
In-Person: Cash payments through retail partners.
Special Notes
Change of address: File Form 8822.
Name change: Report to the Social Security Administration to prevent delays.
Adjusting estimated tax: Refer to Pub. 505 for amending payments.
Penalties may apply for underpayments.
What’s New for 2024?
Increased standard deduction amounts.
Updated social security tax wage base.
Increased additional child tax credit.
Increased adoption credit or exclusion.
For more detailed information and forms, visit IRS.gov or refer to the instructions for Form 1040-ES.