(NEXSTAR) – The September deadline for estimated tax payments is fast approaching, but the Internal Revenue Service (IRS) says taxpayers who live in designated disaster areas across the U.S. will be automatically granted a tax deferral.
For people who don't have an employer that withholds a portion of their paycheck, September 16 is the deadline to file estimated taxes with the IRS. Taxpayers who fall into this category include the self-employed, retirees, investors, businesses, and corporations.
“Taxpayers who underpaid tax may be subject to penalties, whether they paid through withholding or estimated payments,” the IRS warned. “Late or missed estimated payments are May be penalized Even though you are due a refund when you file your tax return.”
According to the IRS, a good rule of thumb is for taxpayers to make estimated payments if they expect:
- You must owe at least $1,000 in taxes in 2024 after taxes withheld and tax credits.
- Your withholding and tax credit will be the lesser of:
- 90% of the tax amount shown on your 2024 tax return or
- 100% of the tax shown on your complete 12-month 2023 tax return.
For further guidance please see below. IRS website.
Respite for taxpayers in affected areas:
Taxpayers living in affected areas of 17 states, Puerto Rico and the Virgin Islands may be granted an automatic extension to pay their taxes, but the new deadlines will vary depending on the extent and location of the damage.
As of September 5th, deadlines are as follows:
- Some taxpayers Arkansas, Iowa, Mississippi, New Mexico, Oklahoma, Texas and West Virginia Payment of estimated taxes must be made by November 1, 2024.
- All or some of the taxpayers Florida, Georgia, Kentucky, Minnesota, Missouri, North Carolina, Puerto Rico, South Carolina, South Dakota, Texas, Vermont and Virgin Islands Estimated taxes are due by February 3, 2025.
More information on how to make payments to the IRS can be found here. Payment page.
