The fourth estimated tax payment is due January 16, 2025 for the 2024 tax year

If you pay estimated taxes quarterly, your final payment for 2024 covers income from October through December. The Internal Revenue Service (IRS) sets the deadline as January 16, 2025—not January 15, because the 15th falls on a Wednesday and the IRS observes a federal holiday on January 20. When the due date lands on a weekend or holiday, the deadline moves to the next business day.

Estimated tax payments are required if you expect to owe $1,000 or more in federal income tax after accounting for withholding and credits. Self-employed people, freelancers, investors, and anyone with income not subject to payroll withholding typically make these payments. The IRS divides the year into four quarters, each with its own deadline.

Missing the January 16 deadline triggers a penalty and interest charge on the unpaid amount, even if you file your full tax return on time in April. The penalty is calculated daily from the due date forward. You can still make the payment after January 16, but the penalty accrues until you pay.

Key Takeaways

  • The final 2024 estimated tax payment is due January 16, 2025, and covers income earned from October through December.
  • Estimated taxes are required if you expect to owe $1,000 or more in federal income tax after withholding and credits.
  • You can pay through IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), credit or debit card, or mail a check with Form 1040-ES.
  • Paying late triggers a penalty and interest charge that continues to accrue until the full amount is paid, even if you file your tax return on time.
  • If your income dropped or you had unexpected withholding, you may be able to adjust your final payment or request a penalty waiver.

The four quarterly deadlines and what each covers

The IRS divides estimated tax into four payments tied to calendar quarters. The first payment, due April 16, covers January through March income. The second, due June 17, covers April through May. The third, due September 16, covers June through August. The fourth and final payment, due January 16 of the following year, covers October through December.

These dates shift slightly each year depending on weekends and federal holidays. If a due date falls on a Saturday, you have until Monday. If it falls on a Sunday, you have until Monday. If it falls on a federal holiday that the IRS observes, the deadline moves to the next business day. The IRS publishes the exact dates each year on its website.

You do not have to make all four payments. If your income is uneven—for example, you earn most of your money in the fall—you can skip early quarters and make larger payments later. However, the IRS calculates underpayment penalties based on how much you owed in each quarter, so uneven payments may still trigger a penalty if any single quarter was underfunded, even if your annual total is correct.

How to pay your final estimated tax payment

IRS Direct Pay is the fastest method and costs nothing. You go to irs.gov, enter your tax information, and transfer money directly from your bank account. The payment posts within one business day, and you receive a confirmation number immediately. This method works for individuals and sole proprietors.

The Electronic Federal Tax Payment System (EFTPS) is the IRS's official payment platform for businesses and self-employed people. You enroll once, then schedule payments online or by phone. EFTPS allows you to schedule a payment in advance—for example, you can schedule your January 16 payment on January 10 and it will post on the due date. There is no fee.

You can also pay by credit or debit card through a third-party processor. The IRS does not charge a fee, but the processor does—typically 1.87% to 2.35% of the payment amount. This method is useful if you want to earn credit card rewards, but the fee often outweighs the benefit unless you are paying a large amount.

If you prefer to mail a check, include Form 1040-ES (the estimated tax voucher) with your payment. Write your Social Security number, tax year, and the quarter on the check. Mail it to the IRS address listed in the Form 1040-ES instructions for your state. The postmark date is the payment date, so mail it several days early to ensure it arrives by January 16.

What happens if you miss the January 16 deadline

The IRS charges two separate penalties for late estimated tax payments: failure-to-pay penalty and interest. The failure-to-pay penalty is 0.5% of the unpaid tax per month, calculated daily. Interest is set quarterly by the IRS and is currently around 8% annually, but it changes each quarter. Both penalties accrue from the due date until you pay in full.

If you pay on January 20, you owe five days of penalties and interest. If you pay in April when you file your return, you owe three months of penalties and interest. The longer you wait, the more the penalties cost. A $2,000 underpayment that sits unpaid for three months can accumulate $50 to $100 in penalties and interest alone.

You can request a penalty waiver if you have reasonable cause. The IRS considers circumstances like a serious illness, death in the family, or a significant change in income that you could not have predicted. You must request the waiver in writing when you file your tax return or when you pay the balance due. Simply paying late without explanation does not remove the penalty.

Adjusting your payment if your income changed

If your income dropped significantly in the fourth quarter, you may have overpaid your estimated taxes. You have two options: make a smaller final payment now, or pay the full amount and claim a refund when you file your return in April.

To make a smaller final payment, you must recalculate your expected annual income and tax liability. Use Form 1040-ES to work through the calculation. If your new estimate shows you have already paid enough through the first three quarters, you can skip the fourth payment entirely. However, if the IRS later determines you underpaid, you will owe the penalty and interest, so this approach carries risk unless you are confident in your numbers.

The safer route is to pay the full amount by January 16, then claim the overpayment as a refund or credit toward next year's estimated taxes when you file your return. This avoids any penalty risk and gives you time to calculate precisely what you owe.

Estimated tax if you are self-employed or have business income

Self-employed people and business owners must pay estimated taxes on net profit—income minus business expenses. You calculate this using Schedule C (for sole proprietors) or your business tax return. The amount you owe depends on your net profit, not your gross revenue.

If you have employees and withhold payroll taxes, those withholdings count toward your estimated tax obligation. For example, if your business owes $8,000 in estimated tax for the year but you withhold $2,000 in payroll taxes, you only need to pay $6,000 in estimated payments. The IRS credits withholding against your estimated tax liability.

Many self-employed people use accounting software or work with a tax professional to calculate quarterly payments. This reduces the risk of underpayment and ensures you are using the correct income figure. If your income is highly variable, a professional can also help you decide whether to make equal quarterly payments or adjust each quarter based on actual earnings.

Frequently Asked Questions

Can I pay my estimated tax late and just pay the penalty?

You can pay late, but you cannot avoid the penalty by paying it. The failure-to-pay penalty and interest accrue automatically from the due date until you pay. You can request a waiver only if you have reasonable cause, such as a serious illness or death in the family. Simply being late does not may have access to.

What if I already had taxes withheld from a W-2 job?

Withholding from a W-2 job counts toward your total federal tax liability. If you earned $50,000 from self-employment and $30,000 from a W-2 job with $8,000 withheld, your estimated tax obligation is reduced by that $8,000. You only pay estimated tax on the portion of income not subject to withholding.

Do I have to make all four payments, or can I pay once a year?

You can pay once a year, but the IRS calculates underpayment penalties based on how much you owed in each quarter. If you pay everything in January, you may still owe a penalty for underpaying in earlier quarters, even if your annual total is correct. Quarterly payments avoid this risk.

What if I cannot pay the full amount by January 16?

Pay what you can by the deadline to minimize penalties and interest. The penalty is calculated on the unpaid balance, so a partial payment reduces the amount subject to the penalty. You can set up a payment plan with the IRS for the remaining balance, though interest and penalties will continue to accrue until it is paid in full.

Does paying by credit card change the due date?

No. The due date is January 16 regardless of payment method. When you pay by credit card through a third-party processor, the processor's confirmation shows when the payment was submitted, but the IRS records the payment date based on when the processor transfers the funds to the IRS, which is typically one to two business days later. To be safe, pay by January 14 if using a credit card.