It depends. The IRS system is 'pay as you go', when you make money they want the tax dollars at that time (quarterly). However, if you had no penalty for a late payment, then you may not need to pay estimated tax for 2024. Likewise, you can choose to pay all balance due when you file your return, even if you have a late payment fee and interest. The following will explain when a late payment fee or interest might apply if you have a balance due on your tax return, or show you how to avoid one.
You can decide not to pay estimated tax and ignore the vouchers if you like. The due dates are as follows:
- Jan - Mar estimated tax payment due April 18th
- Jan - May estimated tax payment due June 15th
- Jan - Aug estimated tax payment due September 15th
- Jan - Dec estimated tax payment due January 15th, 2024
Generally, you can avoid the penalty if your total timely estimated payments and withholdings are greater than or equal to the lesser of:
- 90% of the total tax after credits for the current year, or
- 100% of the total tax after credits in the prior year
- See one exception below.
You can also avoid the penalty if the amount you owe is less than $1,000 as long as any estimated tax payments you made are timely.
Note: High-income taxpayers. If your adjusted gross income (line 11 of your 2023 Form 1040) is greater than $150,000 (or $75,000 if you're married and file a separate return from your spouse), you can avoid a penalty by paying at least 110% of your total tax from the prior year.
@everready63
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