Estimated taxes are an unavoidable fact of life for many taxpayers. That is because the U.S. has a pay-as-you-go system, which means the IRS expects you to pay your taxes as you receive or earn taxable income.
- To comply with this system, people who don't have taxes withheld from a traditional paycheck or other income because they are retired or self-employed for example, usually make quarterly estimated tax payments.
- The amount of the payments is based on estimates of your tax liability for the year, determined largely by your taxable income.
When it comes to estimated taxes, a main concern is knowing when to make the payments. Generally, payments are due in January, April, June, and September. The next upcoming date when estimated taxes are due is Tax Day, April 15th. If you miss an estimated tax payment deadline you may have to pay a penalty.
However, it's worth noting that due to severe storms and natural disasters affecting many states this year and last, the IRS has extended several tax deadlines. These extensions are to provide tax relief for taxpayers and businesses who have been directly impacted. Here’s what you need to know.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
More from Kiplinger | When Estimated Tax Payments Are Due
States with IRS estimated tax deadline extensions
If you live or have a business in a directly impacted IRS-identified disaster area in one of the following states, you now have more time to make certain estimated tax payments. (The applicable deadlines vary by state.)
And, if you're unsure whether you or your business should wait to make an estimated tax payment, consult with a trusted tax professional.
Alabama, California, and Georgia
The October 16 extended tax deadline for those directly impacted by declared disasters in California, Georgia, and Alabama also applies to 2023 estimated tax payments. (As mentioned, those would normally be due on April 18, June 15, and Sept. 15.)
- Quarterly payroll and excise tax deadlines for businesses are also extended from those typically due on Jan. 31, April 30, and July 31.
- The IRS tax deadline extension of Oct. 16, 2023, for people in California, Georgia, and Alabama storm-impacted disaster areas also applies to fourth quarter 2022 estimated payments.
If you had an estimated tax payment due on Jan. 17, 2023, the IRS says you could skip that payment and include it with your tax return when you file on or before October 16.
More from Kiplinger | California Tax Deadline Extension: What You Should Know
Georgia Idalia tax deadline extension
Update: If you live in an area of Georgia impacted by Hurricane Idalia, the IRS has recently announced that you have more time to file certain returns and make certain payments.
If you live or have a business in one of the following 28 counties, the newer Feb. 15, 2024, tax deadline extension applies to returns and taxes originally due from Aug. 30, 2023, to before Feb. 15: 2024. (The IRS could add more designated disaster areas.)
Appling, Atkinson, Bacon, Berrien, Brantley, Brooks, Bulloch, Camden, Candler, Charlton, Clinch, Coffee, Colquitt, Cook, Echols, Emanuel, Glynn, Jeff Davis, Jenkins, Lanier, Lowndes, Pierce, Screven, Tattnall, Thomas, Tift, Ware, and Wayne counties.
This includes 2022 individual income tax returns due on Oct. 16, 2023, and quarterly estimated tax payments, normally due on Sept. 15, 2023, and Jan. 16, 2024.
Florida
The IRS extended the tax deadline to Feb. 15, 2024, for Floridians directly impacted by Hurricane Idalia. That deadline also applies to quarterly estimated tax payments usually due on Sept. 15, 2023, and Jan. 16, 2024.
- Additionally, the IRS says that businesses in Florida with an original or extended due date also qualify for the Feb. 15, 2024 deadline.
- So, calendar-year partnerships or S corporations whose 2022 extensions expire Oct. 16, 2023, and Sept. 15. 2023, respectively, qualify for the Feb 15, 2024 extension.
The IRS won’t assess penalties on payroll and excise tax deposits due on or after Aug. 27, 2023, and before Sept. 11, 2023, as long as the tax deposits are made by Sept. 11, 2023 (that’s today).
Hawaii
The IRS postponed various tax filing and payment deadlines for Hawaiians directly impacted by the devastating wildfires. The relief applies to deadlines from Aug. 8, 2023, through Feb. 15, 2024. Affected individuals and businesses have until Feb. 15, 2024, to file certain federal returns and pay any taxes that were originally due during that period.
The Feb. 15, 2024, deadline for Hawaii disaster areas applies to:
- Quarterly estimated income tax payments usually due on Sept. 15, 2023, and Jan. 16, 2024.
- Quarterly payroll and excise tax returns usually due on Oct. 31, 2023, and Jan. 31, 2024.
- Calendar-year partnerships and S corporations whose 2022 extensions run out on Sept. 15, 2023.
- Calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023.
- Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.
South Carolina
The tax deadline relief from the IRS for South Carolina postpones various tax filing and payment deadlines from Aug. 29, 2023, through Feb. 15, 2024. As a result, South Carolina individuals and businesses directly impacted by Hurricane Idalia have until Feb. 15, 2024, to file returns and pay taxes originally due during that period.
The Feb. 15, 2024, deadline for South Carolina applies to:
- Quarterly estimated income tax payments typically due on Sept. 15, 2023, and Jan. 16, 2024.
- Quarterly payroll and excise tax returns usually due on Oct. 31, 2023, and Jan. 31, 2024.
- Calendar-year partnerships and S corporations whose 2022 extensions run out on Sept. 15, 2023.
- Calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023.
- Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.
Also, the IRS will waive penalties for failing to make payroll and excise tax deposits due on or after Aug. 29, 2023, and before Sept. 13, 2023, as long as the deposits are made by Sept. 13, 2023.
What to do about estimated tax penalties
What if you live or have a business in an IRS-declared disaster area and receive a late filing or late payment penalty notice? If the payment falls into the extended deadline/postponement period designated by the IRS, you should contact the IRS at the number provided on the notice you received.
Also, if you are affected by a natural disaster and reside outside the covered disaster area in your state, you can contact the IRS disaster hotline at 866-562-5227 to request tax relief. The agency has a system that automatically detects taxpayers in the covered disaster area and offers filing and payment relief.
Related Content
-
Retire in Costa Rica With These Three Tax BenefitsRetirement Taxes Costa Rica may be a good place for retirement if you like the low cost of living and savings for your heirs.
-
Five Ways to Ease Caregiver StressCaregiver stress is real. Here are five techniques to protect your health and happiness while caring for a loved one.
-
Retire in Costa Rica With These Three Tax Benefits
Retirement Taxes Costa Rica may be a good place for retirement if you like the low cost of living and savings for your heirs.
-
Ten IRS Audit Red Flags for Self-Employed IndividualsIRS Audits Taxpayers who file Schedule C with their Form 1040 have a greater chance of an IRS audit
-
Trump Wants You Out of the IRS, But You'll Have to Wait Until MayIRS Some IRS employees won’t be able to resign using the buyout offer until the end of tax season.
-
Are Tips Taxable in 2025? Understanding the IRS RulesTaxable Income With all the recent talk about ending federal taxes on tips, some wonder whether tips are taxable income.
-
What's Going on With New Jersey Property Tax Programs?Property Tax ANCHOR and ‘Senior Freeze’ just got a refresh, and there’s a new program: Stay NJ. Learn how to save on New Jersey property taxes.
-
States That Won't Tax Your Retirement Income in 2025Retirement Taxes Several states don’t tax Social Security benefits, 401(k)s, IRAs, and pensions. But you may still have to pay state taxes on some incomes.
-
Navigating 1099s: A Guide to All 22 IRS Tax Forms to KnowTax Filing You should receive your 1099 form by February 15. But what happens next?
-
Five States With the Largest EITC ChecksEITC Households in these states received a larger Earned Income Tax Credit (EITC) last year.
