Important Reminder: Estimated 2024 Q2 Tax Payment Deadline
Flowers are blooming and the days are getting longer, which means summer is right around the corner! Along with beautiful weather, June also has an important tax deadline. June 17th is the 2024 Q2 estimated tax payment deadline, with Q2 covering the period between April 1 - May 31. At Brannen CPA Services, our goal is to provide relevant insights and best practices for our clients and we often recommend that our clients make estimated tax payments to avoid surprises at tax filing. In this article we discuss why it’s important to pay your taxes quarterly.
Avoid Surprises
You can avoid surprises when you file your taxes by making estimated quarterly tax payments. It is also a helpful way to outline and keep a more accurate budget for your expenses. As the IRS likes to say, “Pay as you go, so you won’t owe.” Typically, you have taxes withheld from your paycheck. However, if you have too little withheld, you may face a penalty at tax filing time. The IRS recommends that you check your withholding often and make adjustments when changes arrive. Life changes such as a marriage, divorce, new job, or side job will affect your taxes. Also, if you earn other types of taxable income beyond your wages, and thus separate from your withholdings, you’re responsible for making estimated quarterly tax payments. These types of taxable income include:
Interest
Dividends
Alimony
Capital Gains
Prizes and Awards
Rental income
Self-employed income
The IRS has seen a recent increase in the number of taxpayers subject to penalties for not paying enough income taxes. Penalties for not paying enough taxes can be hundreds of dollars. This can be avoided by making quarterly estimated tax payments. Not only do these quarterly tax payments help you avoid a penalty, they also help you avoid an unexpected tax bill when you file.
If you are self-employed, work in the gig economy or earn non-wage income (through rentals or investments), you’ll want to make quarterly estimated tax payments. You can make an estimated tax payment based on what you expect to earn. Use your previous tax return as a guide, or use the IRS’s worksheet for Form 1040-ES.
2024 Estimated Quarterly Tax Deadlines
Q3: September 16 (for June 1 - August 3 payment period)
Q4: January 15 (for September 1 - December 31 payment period)
How to Make Estimated Tax Payments
Mail in payment with Form 1040-ES
Use the IRS2Go App
Use the IRS website
Stay on top of your budget and the taxes you owe by making estimated quarterly tax payments. Please note, the tax relief for Mainers that were impacted by the severe winter storms applies to this Q2 Estimated Tax deadline as well. Therefore, if you live in Cumberland, Hancock, Knox, Lincoln, Sagadahoc, Waldo, Washington, or York County, you have until July 15th, 2024 to file your Q2 Estimated Taxes. We are happy to assist our clients in setting estimated quarterly tax payments. It makes tax filing season go much smoother! So if you have questions about setting up estimated quarterly tax payment or have other questions, please give us a call at 207.271.9600. We’re here to help you thrive!