Tuesday February 27, 2024
Estimated Tax Payments Due January 17
Taxpayers who are self-employed or independent contractors generally pay quarterly taxes to the IRS. However, other individuals who owed tax last year may also need to make an additional payment. Situations such as having itemized deductions in past years, but now are taking the standard deduction may need to make an estimated tax payment. Others affected could be two wage-earner households, those with additional sources of income such as dividends or individuals with complex tax situations.
The IRS reminds taxpayers that taxable income may include unemployment income, refunds from state tax entities, interest income and gig economy or digital asset payments. Generally, all types of income are included in your adjusted gross income.
Some taxpayers also have received holiday bonuses, end-of-year stock dividends or capital gain distributions. Finally, if you have sold virtual currency or real estate at a profit, this will affect your taxes.
A quick and easy way to make an estimated tax payment is with IRS Direct Pay. You may also make payments through an IRS Online Account. The Electronic Filing Tax Payment System (EFTPS) may also be used.
An estimated tax payment this month could help to avoid a surprise tax bill or an additional tax penalty. When you are thinking about your 2023 taxes, you also may want to consider using the Tax Withholding Estimator on IRS.gov.