Estimated Taxes: Do You Have More Time To Pay the IRS?

picture of an alarm clock against a light blue background

(Image credit: Getty Images)

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.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free 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.

Kelley R. Taylor is the senior tax editor at Kiplinger.com, where she breaks down federal and state tax rules and news to help readers navigate their finances with confidence. A corporate attorney and business journalist with more than 20 years of experience, Kelley has covered issues ranging from partnerships, carried interest, compensation and benefits, and tax‑exempt organizations to RMDs, capital gains taxes, and income tax brackets. Her award‑winning work has been featured in numerous national and specialty publications.