Everything You Need To Know About Quarterly Tax Payments for Small Businesses

Did you know that the federal income tax system operates on a pay-as-you-go basis in certain situations?

This means that if you run a small business, you may need to make quarterly estimated tax payments to avoid penalties from the IRS.

Read on to learn about the specific deadlines for these payments this tax year.

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When are the Estimated Tax Due Dates?

Even if you’re familiar with making quarterly estimated tax payments, you might still wonder about the exact deadlines. The dates for this tax year are as follows:

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April 15, 2024 - Estimated Tax Due Date #1

June 17, 2024 - Estimated Tax Due Date #2

September 16, 2024 - Estimated Tax Due Date #3

January 15, 2025 - Estimated Tax Due Date #4

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Estimated tax due dates are typically on the 15th of April, June, September, and January. If the date falls on a weekend or holiday, the deadline moves to the next business day.

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Your IRS Form 1040-ES should be postmarked by the dates listed above. The postmark serves as proof to the IRS that your payment was made on time.

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Who Needs to Pay Estimated Taxes?

Estimated tax payments are generally required for:

- Individuals, sole proprietors, partners, and S corporation shareholders expecting to owe $1,000 or more in taxes when filing their return.

- Corporations expecting to owe $500 or more when their return is filed.

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If you have self-employment income, you must file an annual return and make quarterly estimated payments. Unsure if this applies to you? Learn more about who needs to pay estimated taxes and important tax deadlines.

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Can I Pay Estimated Taxes in One Lump Sum?

Many small business owners wonder if they can make all their estimated tax payments at once or pay an entire quarter upfront. The short answer is no. The U.S. tax system requires you to pay and file quarterly to avoid penalties.

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Save on Your Small Business Tax Preparation

Our team of experts at TQ Group are ready to assist you with making estimated tax payments. Reach out to us today to learn more!

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How to Pay Quarterly Taxes

You have several options for making your quarterly tax payments:

1. Apply this year’s refund to next year’s estimated taxes when you file your annual return.

2. Use IRS Form 1040-ES to calculate your estimated tax and mail your payment each quarter.

3. Visit IRS.gov to use the Electronic Federal Tax Payment System, where you can schedule payments weekly, monthly, or quarterly, up to a year in advance.

4. Work with a TQ Group tax professional who can review your situation and recommend adjustments to your quarterly payments.

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What Happens if You Miss a Payment?

Failing to make any of your estimated tax payments can result in penalties for underpayment. The penalty is based on a complicated formula involving the amount of the underpayment and the number of days it remains unpaid, starting from the first missed payment.

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Need More Help with Quarterly Estimated Taxes?

If you have more questions about estimated tax payments or small business tax deadlines, TQ Group is here to help you stay on track.

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Our tax preparation services ensure you’re paying the correct amount of quarterly taxes by the right due dates! Reach out to us today for our expert help.