If you underpaid taxes in 2024, consider making a fourth-quarter estimated tax payment by Jan. 15, 2025, to avoid penalties.
The U.S. tax system requires payments throughout the year via paycheck withholdings or quarterly estimated payments. Missing a quarterly payment may lead to penalties when filing your 2025 return.
Who Needs to Pay?
- Self-employed individuals or independent contractors.
- Those who owed taxes last year and may owe again.
- Households with two earners or additional income sources like dividends.
- Taxpayers with complex financial situations or inadequate withholding.
What Income is Taxed?
Taxable income includes side jobs, gig work, unemployment benefits, digital assets (e.g., cryptocurrency), year-end bonuses, stock dividends, and capital gains.
How to Pay
Payments can be made through the IRS Online Account, Direct Pay, EFTPS, or by check to “United States Treasury.”
Making a payment now may reduce or eliminate penalties. Use tools like the IRS The Tax Withholding Estimator or Form 1040-ES to calculate your estimated payment.
Plan ahead and take steps to avoid surprises during the upcoming tax season.
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