At JHA we want to ensure you stay informed about your tax obligations throughout the year. In the U.S., income taxes are collected on an ongoing basis, often through employer withholdings from each paycheck. However, if you earn income as a freelancer or receive certain types of nonwage income, you may need to pay "estimated quarterly taxes" to the IRS.
What Are Estimated Tax Payments?
Estimated tax payments are taxes paid to the IRS throughout the year on earnings that are not subject to federal tax withholding. This can include income from self-employment, freelance work, dividends, realized capital gains, prizes, and other nonwage earnings. Essentially, if you’re earning income that isn’t subject to regular payroll tax withholding, you’re likely required to make estimated tax payments.
Who Needs to Make Estimated Tax Payments?
Freelancers and Self-Employed Individuals: If you’re running your own business or working as a freelancer, you’ll need to pay estimated taxes on your income.
Recipients of Nonwage Income: This includes income from dividends, interest, capital gains, and other non-employment-related sources.
W-2 Employees with Insufficient Withholding: Even if you are a W-2 employee, you may need to make estimated tax payments if the tax withheld from your paycheck doesn’t fully cover your tax bill.
How Are Estimated Tax Payments Made?
The IRS requires that estimated tax payments be made as income is earned, and these payments are collected quarterly. It's important to note that the IRS's schedule for these payments doesn’t align with the regular calendar quarters. Instead, estimated tax payments are due in January, April, June, and September.
Remaining Payment Dates for This Year
June 17th
September 16th
January 15th (of 2025)
There are several ways you can pay your estimated tax payments, including:
Your online IRS account.
Send estimated tax payments with Form 1040-ES by mail
The U.S. Treasury’s Electronic Federal Tax Payment System.
By debit or credit (additional fees apply).
It is important to mark these dates on your calendar to avoid any penalties for late payments. If you have any questions or need assistance with your estimated tax payments, please don't hesitate to reach out – we are always happy to help!
