With the arrival of summer, it’s understandable that taxes might not be at the forefront of your mind. However, there are some important IRS deadlines in June that you should not overlook.
Although the deadline for filing federal taxes for the 2024 season has passed (it was April 15th for most people), there are other significant tax deadlines throughout the year. Missing these deadlines could result in lost tax savings or, worse, penalties from the IRS.
IRS 2024 Estimated Tax Payment Deadline
Estimated tax payments are crucial to ensure you contribute to your tax liability throughout the year. The U.S. tax system operates on a “pay-as-you-go” basis. This means that, unlike traditional employees who have taxes withheld from their paychecks, those with untaxed income sources must estimate and pay taxes quarterly to avoid a large bill at year-end.
The second quarterly estimated tax payment is due on June 17th. Making accurate payments on these dates helps prevent penalties for underpayment. To calculate estimated payments, taxpayers should project their annual income, deductions, and credits. Form 1040-ES includes worksheets and instructions to simplify this calculation. The IRS imposes penalties based on the amount underpaid and the duration of the underpayment.
By keeping up with these payments, you can spread your tax liability evenly throughout the year, reducing the risk of an unexpected bill when you file your annual return.
Tax Filing Deadline for U.S. Citizens Living Abroad
Even if you live outside the United States, as a U.S. citizen, you must file an annual tax return with the IRS. This is because the U.S. tax system is based on citizenship, not residency. Therefore, income earned anywhere in the world must be reported, including salaries, dividends, rental income, and other sources.
Filing taxes while living abroad can be more complex due to factors like foreign income, tax treaties, and the potential for double taxation.
For instance, you might need to file Form 114, the Report of Foreign Bank and Financial Accounts (FBAR), which is used to report certain foreign financial accounts to the U.S. Treasury Department.
Despite these complexities, it’s essential for U.S. citizens or residents living abroad to file their U.S. income tax returns. There are tax benefits available to those living overseas, such as the foreign earned income exclusion and the foreign tax credit. Additionally, expanded tax benefits, like the child tax credit, the credit for other dependents, or the child and dependent care credit, can apply, but only if you file a U.S. income tax return.
IRS Extended Tax Deadline for Disaster-Affected States
Every year, the IRS extends tax deadlines for taxpayers in areas affected by severe storms and natural disasters. The agency announces these extensions for various states as disasters occur. The new deadlines can vary by state, and individual states may or may not adjust their state tax deadlines to match the extended federal deadlines.
According to a recent IRS announcement, a June 17th tax deadline applies to taxpayers affected by seven disaster declarations. To check if your area is included in these extensions, visit the Disaster Relief page on the IRS website. Staying informed about these extensions is crucial to avoid penalties and ensure you take advantage of any available tax relief.
Tips for Staying on Top of Tax Deadlines
Staying on top of tax deadlines might seem like a daunting task, but there are strategies to help you avoid missing any important dates. Here are some tips:
Use reminders: Set reminders on your phone or calendar to alert you well in advance of deadlines.
Review your finances regularly: Keep track of your income, deductions, and credits regularly to avoid surprises at the end of the year.
Use online tools: There are many online tools and calculators available to help you estimate your tax payments and check your eligibility for certain credits and deductions.
By following these tips, you can make tax season less stressful and ensure that you are always prepared for any deadlines. Whether you are making estimated tax payments, filing from abroad, or dealing with extended deadlines due to disasters, staying organized and informed will help you manage your tax responsibilities effectively.
