01/07/2025
Your LAST estimated tax payment is due on January 15th, here’s what you need to know: ⤵️
WHO HAS TO PAY?
If you expect to owe $1,000 or more in taxes when you file your tax return, you generally need to make estimated tax payments.
This generally includes self-employed individuals, business owners, people with significant investment income, and anyone earning income without sufficient withholdings.
WHEN ARE PAYMENTS DUE?
Estimated taxes are paid in quarterly installments. For 2024, the remaining fourth quarter installment is due on January 15, 2025.
Payments can be sent via mail with Form 1040-ES, but I recommend checking out IRS.gov/payments to learn more about the IRS’s electronic payment methods!
HOW MUCH DO I PAY?
You should be paying taxes on the income earned in the period covered by the quarterly tax payment.
To avoid an underpayment penalty, you need to pay at least 90% of the tax you owe in the current year, or 100% (110% for high-income earners) of your prior-year tax liability (whichever is lower).
