The September tax filing deadline is just around the corner, but there’s some relief for those in designated disaster areas. According to the IRS, taxpayers living in these affected regions will receive an automatic extension. So, you may still have time to make an estimated tax payment.
IRS tax filing and September 16
For those without an employer withholding taxes from their paychecks, September 16 is a crucial date. This group includes a variety of taxpayers, such as:
- Self-employed individuals
- Retirees
- Investors
- Businesses and corporations
The IRS cautions that taxpayers who underpay their taxes could face penalties, regardless of whether the payment was through withholding or estimated tax payments. They specifically warn, “Late and skipped estimated tax payments can incur penalties even if a refund is due when a tax return is filed.”
So, if you fall into any of these categories and live outside of a disaster-designated area, make sure to mark your calendar for September 16 to avoid any penalties.
A general guideline, according to the IRS
As a matter of fact, taxpayers should make estimated payments if they expect:
- that they will owe at least $1,000 in taxes for 2024 after subtracting their withholding and tax credits.
- when their withholding and tax credits to be less than the smaller of:
- 90 percent of the tax to be shown on their 2024 tax return, or
- 100 percent of the tax shown on their complete 12-month 2023 tax return.
Detailed guidance is available on the IRS website: https://www.irs.gov/individuals/tax-withholding-estimator
Some help for Taxpayers in Disaster Areas
Taxpayers living in disaster areas across 17 states, Puerto Rico, and the Virgin Islands may automatically receive more time to make a payment. The new deadline will vary based on the extent of the destruction and the locality.
Current Deadlines as of Sept. 5
- Taxpayers in parts of Arkansas, Iowa, Mississippi, New Mexico, Oklahoma, Texas, and West Virginia have until Nov.