Estimated tax payments let self employed people and others with income that is not taxed through payroll pay federal income taxes during the year. For 2024, the IRS set four payment deadlines, with periods that do not line up neatly with calendar quarters.
Who needs to make estimated tax payments
Employees usually pay income tax as they earn wages because employers withhold it from each paycheck. People who earn income without withholding, including self employed workers and people receiving interest or dividends, may need to pay estimated taxes directly.
The general trigger is an expectation of owing at least $1,000 in tax for the year. The requirement is not limited to business owners: someone with a large share of income from sources that do not have tax withheld may also need to make payments. Form 1040 ES from the Internal Revenue Service explains how to assess whether the rules apply.
Estimated payments can help prevent a large balance from coming due when you file your annual return. Under the source’s stated safe harbor rules, you can avoid an underpayment penalty if your withholding and estimated payments reach at least 90% of your current year tax or 100% of the prior year tax. The prior year target is 110% for people with adjusted gross income above $75,000 for single filers or $150,000 for joint filers.
Those targets are a way to check whether payments are sufficient, not a substitute for calculating what you actually expect to owe. If your income changes substantially, revisit the estimate rather than relying on an old number without checking it.
Missing a required payment can lead to penalties and interest. A penalty can still apply when you pay late even if your final tax return shows a refund, so do not assume a refund will erase a missed deadline. If your first payment is already overdue, paying as soon as you can may reduce the amount of time it remains unpaid.
2024 estimated tax payment dates and covered income
The IRS calls the schedule quarterly, but the income periods are different lengths. Use the specific dates below rather than dividing the calendar into four equal blocks. If a due date falls on a weekend or holiday, the deadline moves to the next business day.
| Payment due date | Income period covered | Length of period |
|---|---|---|
| April 15, 2024 | January 1 through March 31 | Three months |
| June 17, 2024 | April 1 through May 31 | Two months |
| September 16, 2024 | June 1 through August 31 | Three months |
| January 15 of the following year | September 1 through December 31 | Four months |
The schedule changes each year, so these dates apply to 2024 estimated taxes. Check the current Internal Revenue Service schedule before sending a payment for another tax year.
You can pay more often than the listed deadlines, such as weekly, every two weeks or monthly. The key is to have the amount due for each period paid by its deadline. More frequent payments can help a worker whose income arrives irregularly keep tax money set aside, but they do not change the official due dates or the total obligation.
How to calculate and send a payment
Start with the prior year’s tax bill as a reference, then update the estimate for this year’s expected income, deductions and credits. The figure is not fixed in January. A self employed person whose earnings rise or fall during the year can revise the estimate and adjust a later payment to account for an earlier overpayment or shortfall.
Form 1040 ES includes a worksheet for working through the estimate, along with payment dates and information about exemptions. Keeping a record of income and expenses makes the calculation easier. Accounting software can help organize those records; if they are incomplete or difficult to reconcile, a bookkeeper or tax professional may be able to help. Allow time to get that help before a deadline arrives.
For example, a delivery worker who usually works four hours each day can use that workload as a starting point for estimating earnings. If the worker takes on fewer hours later, the next estimate can reflect the lower expected income. The same principle works in the other direction when earnings increase: recalculate rather than assuming the first estimate still fits.
Once you have worked out the amount, the IRS lists several ways to pay. Options include an IRS Online Account, a check, payment by telephone, a credit card, an online banking portal and the IRS2Go mobile app. The source material does not provide fee details for these channels, so check the terms shown for your chosen method before confirming a payment.
Keep confirmation details and a record of the amount and date paid with your tax records. If you use an account or app, confirm that the payment was submitted for the right tax year and period. A payment initiated through a method you use frequently can still be misapplied if you select the wrong period.
What to do if income changes or a payment is hard to afford
When earnings change, update the estimate for the next payment period. If you paid too little earlier in the year, a larger later payment may help make up the difference. If you paid too much, revise what you expect to owe rather than continuing to send the old amount automatically. Because the payment periods differ in length, use the IRS dates and worksheet when determining the timing and amount of an adjustment.
If the estimated amount is unaffordable, paying what you can may reduce the balance that remains unpaid, though it does not guarantee that penalties will be avoided. The IRS has payment plan options for some taxpayers. Approval is not automatic, and the terms depend on the individual situation, so consult IRS information promptly rather than waiting until the annual return is due.
Estimated tax is only one part of planning for irregular income. Self employed people may also need to reserve money for retirement savings, insurance or longer term goals. Keep those plans separate from money set aside for taxes, and revisit the estimate when income or eligible credits and deductions change.