Attention, Taxpayers: Don't Miss the Jan. 15 Deadline for Estimated Taxes

As the calendar turns to 2025, it's time for taxpayers to start thinking about their estimated tax payments for the year. The IRS has reminded taxpayers that the fourth-quarter estimated tax payment deadline is fast approaching, and missing it could result in unexpected penalties and fees.

If you're a self-employed individual, independent contractor, or have income from investments, gig economy work, or digital assets, you may need to make estimated tax payments throughout the year. The IRS requires most taxpayers to pay at least 90% of their tax liability for the current year or 100% of the tax shown on their prior year's return to avoid underpayment penalties.

The estimated tax payment deadlines for 2024 are as follows:

* April 15, 2024
* June 15, 2024
* September 15, 2024
* January 15, 2025

If you miss a payment, you may be charged a penalty, even if you're due a refund when you file your income tax return. To avoid this, it's essential to make your estimated tax payments on time.

The IRS provides several payment options, including:

* IRS Online Account
* IRS Direct Pay
* Debit or credit card
* Digital wallet
* Electronic Federal Tax Payment System (EFTPS)

For more information on other payment options, visit the IRS website.

If you're unsure about how much tax you owe, the IRS offers the Tax Withholding Estimator tool, which can help you determine if you need to make an estimated tax payment and calculate the correct amount of tax to withhold throughout the year.

Don't let the Jan. 15 deadline sneak up on you. Take the time now to estimate your tax liability for the year and make your estimated tax payments accordingly. By doing so, you can avoid unexpected penalties and fees and ensure a smoother tax filing experience in 2025.