The federal tax filing deadline for the 2024 tax season passed (it was April 15 for most), but unfortunately, Tax Day isn’t the only deadline you need to know during the year. Missing another tax deadline might cause you to lose potential tax savings or result in IRS penalties.
So, while taxes are likely among the last things you want to consider as summer begins, here is what you need to know about three tax deadlines that fall on Monday, June 17.
1. Estimated tax payments
Making estimated tax payments helps ensure you contribute to your tax liability throughout the year. The U.S. tax system operates on a "pay-as-you-go" basis. So, unlike traditional employees whose taxes are withheld from their paychecks, individuals with untaxed income streams are supposed to estimate and pay taxes quarterly to avoid a large bill at the end of the year.
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The second quarterly installment of estimated tax payments is due by June 17. Accurate payments by the quarterly due dates help avoid underpayment penalties.
- To calculate estimated tax payments, taxpayers must project their annual income, deductions, and credits.
- Form 1040-ES includes worksheets and instructions to assist with this calculation.
- The IRS imposes penalties based on the amount underpaid and the duration of the underpayment.
By keeping up with estimated tax payments, you can distribute their tax liability evenly throughout the year, reducing the risk of an unexpected tax bill when filing your annual return.
If you would like more information, see When Are Estimated Tax Payments Due in 2024?
2. Tax filing deadline for U.S. citizens living abroad
Despite residing outside the United States, U.S. citizens living and working abroad must file annual tax returns with the IRS. This requirement stems from the U.S. tax system being primarily based on citizenship rather than residency. As a result, income earned anywhere in the world must be reported, including wages, dividends, rental income, and other sources.
- Expats living outside the U.S. are granted an automatic two-month extension from the standard Tax Day deadline.
- This year, they have until June 17 to submit their federal income tax returns.
Filing taxes while living abroad can be more complex due to factors like foreign income, tax treaties, and possible double taxation. For example, taxpayers might need to file Form 114, Report of Foreign Bank and Financial Accounts (FBAR). That’s used to report certain foreign financial accounts to the Treasury Department Financial Crimes Enforcement Network (FinCEN).
Despite the complexities, Rachel Martens, managing director specializing in international tax at CBIZ MHM, stresses the importance of U.S. citizens or resident aliens living abroad filing a U.S. income tax return.
“Taxpayers living abroad may qualify for certain tax benefits such as the foreign earned income exclusion, and the foreign tax credit,” Martens explained in a statement to Kiplinger. Additionally, Martens notes that “expanded tax benefits may apply, including, but not limited to the child tax credit, credit for other dependents, or credit for child and dependent care expenses but can only be claimed if a U.S. income tax return is filed.”
- Meeting the June 17 tax deadline is crucial to avoid penalties and interest.
- However, if more time is needed, taxpayers can request an additional extension to file to October 16 by filing Form 4868, by June 17.
Understanding these requirements and deadlines can help avoid unnecessary complications with the IRS.
3. IRS extended tax deadline in states impacted by disasters
Each year, the IRS extends tax deadlines for taxpayers in designated areas impacted by severe storms and natural disasters. The agency announces these tax deadline extensions for various states as disasters occur.
The new tax deadlines may be different for different states. Also, individual states may or may not conform their state tax deadlines to the extended federal tax deadlines.
According to a recent IRS announcement, a June 17 tax deadline applies to taxpayers affected by seven disaster declarations. These include the following, but the current list of eligible localities is available on the Tax Relief in Disaster Situations page on IRS.gov.
Also, for more information on these and other extended deadlines, see Kiplinger’s report, States With IRS Tax Deadline Extensions This Year.
- One county in California: San Diego. (See California Tax Deadline Extension: What You Need to Know).
- One county and two tribal nations in Connecticut: New London County, and the Tribal Nations of Mohegan and Mashantucket Pequot.
- Nine counties in Michigan: Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland and Wayne.
- Seven counties in Maine: Androscoggin, Franklin, Kennebec, Oxford, Penobscot, Piscataquis, and Somerset.
- Nine counties in Tennessee: Cheatham, Davidson, Dickson, Gibson, Montgomery, Robertson, Stewart, Sumner and Weakley.
- Two counties in Washington: Spokane and Whitman.
- Six counties in West Virginia: Boone, Calhoun, Clay, Harrison, Kanawha, and Roane.
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