Estimated tax due dates: When are quarterly tax payments due for small business owners?

Quick tip: If you’re a small business owner, grab a calendar and mark your estimated tax due dates!

Did you know federal income tax is a pay-as-you-go system in some cases? In fact, if you are a small business owner, you may need to file quarterly estimated tax payments to avoid a penalty from the Internal Revenue Service (IRS). Read on to learn about specific due dates to pay estimated taxes this tax year.

When are the estimated tax due dates?

Even if you’ve made estimated quarterly tax payments in the past, you may still be wondering when the estimated payments are due.

If you meet the requirements for paying estimated taxes every quarter, payments for the tax year are due every quarter on these dates. As you can see, the dates will roll into the next calendar year.

PAYMENT PERIOD	ESTIMATED TAX DUE DATE
June 1 to August 31, 2024	September 16, 2024
September 1 to December 31, 2024	January 15, 2025
January 1 to March 31, 2025	April 15, 2025
April 1 to May 31, 2025	June 16, 2025
June 1 to August 31, 2025	September 15, 2025

NOTE: The estimated tax due dates are generally the 15th day of the month (April, June, September, and January), but if the date falls on a weekend or holiday, the deadline is moved to the next business day.

The estimated tax payment dates above are when your IRS Form 1040-ES should be postmarked. The postmark date lets the IRS know if the estimated tax payment was paid on time.

Can I pay estimated taxes all at once?

Many wonder, “Can I make estimated tax payments on the same date?” Or is it alright to pay a quarter upfront?

This is a common question because people might think filing taxes quarterly is a nuisance. Unfortunately, the answer is NO. Because the United States tax system is pay-as-you-go, you need to pay and file quarterly by the estimated tax due date. If you don’t, you may be charged a penalty.

Who pays estimated tax?

Some people are surprised that many business owners must pay estimated taxes. Included on the list are:

• Individuals, sole proprietors, partners, and S corporation shareholders who expect to owe tax of $1,000 or more when filing their tax return generally have to make estimated tax payments.
• Corporations who expect to owe $500 (or more) in tax when their corporate return is filed also generally have to make estimated tax payments.
• People with business income from self-employment. If this is you, plan on filing an annual return and paying what you owe by the estimated tax payment (see the chart above).

Still unsure if you need to pay estimated taxes?  Read more about who should pay quarterly tax payments and tax deadlines, including corporate tax deadlines.

Working for yourself? Find out what you need to know about taxes for self-employed individuals.

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How do you pay quarterly taxes?

You have a few options for paying your quarterly taxes. They are as follows:

1. Apply your refund from this year to your estimated taxes for the next year (when you submit your annual tax return).
2. Use IRS Form 1040-ES to figure your estimated tax. Then, mail a check or money order with IRS Form 1040-ES each quarter.
3. Visit IRS.gov to use the Electronic Federal Tax Payment System. Here, you can make payments weekly, quarterly, or monthly. You can even set up payments up to a year in advance.
4. Enlist the help of a Block Advisors small business certified tax professional. You can add this service to your tax prep. A tax pro will review your unique situation and suggest changes to your quarterly amount.

Need motivation to get things sorted by the estimated tax due dates? Check out 5 reasons to knock out your taxes this week!

What happens if you don’t pay by the estimated tax due dates?

If you don’t pay any of your estimated taxes, you may incur a penalty for the underpayment. The penalty is a complicated formula; it’s imposed on the amount of underpayment for the number of days it’s unpaid, starting with the first quarter payment.

Need more help with quarterly estimated taxes?

Do you have additional questions about when to pay estimated tax or when small business taxes are due? Rely on our team at Block Advisors to get your small business taxes right and keep your business on track.

Our small business tax preparation process ensures you’re paying the proper quarterly taxes by the right estimated tax due dates.

“Donna made sure we understood everything, every step of the way. She always makes sure we understand the best course of action, as well as all changes each year. She helped us evaluate our options for paying estimated tax payments throughout the year.”

– AMANDA BYRNE, STOKES COUNSELING SERVICES, LLC INDEPENDENT CONTRACTOR

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