The IRS has established a "rule of thumb" that outlines who must make a third-quarter estimated tax payment by September 16.

• You may face a penalty if you fail to make a payment by the third-quarter estimated tax deadline of Sept. 16 in 2024.
• Payments from self-employment, gig work, and investment income are subject to estimated taxes.
• To avoid IRS penalties, you must send 90% of your 2024 taxes or 100% of your 2023 levies if your adjusted gross income is less than $150,000. However, you must meet these thresholds throughout the year.

The estimated tax deadline for the third quarter of 2024 is September 16th, and failing to pay on time could result in a penalty, as per the IRS.

Usually, you require estimated payments for any income that does not have tax withholdings, including self-employment, contract or gig economy work, and investment or retirement income.

If filers haven't withheld enough taxes from their full-time or part-time job, they may need to make estimated payments.

To avoid "refund disappointment or balance due shock," Mark Steber, chief tax information officer of Jackson Hewitt, recommends providing estimated payments.

The IRS specified in a recent news release who should make a payment.

The Senate is discussing tax changes before the expiration of President Trump's 2025 tax policies. There is growing support in Washington to abolish certain Social Security rules. A chart shows the deflation breakdown for August 2024.

If you anticipate owing more than $1,000 in taxes after deducting your 2024 withholdings and tax credits or if you cannot meet the "safe harbor rules," the IRS advises making estimated tax payments.

To avoid IRS penalties, you must pay at least 90% of your 2024 tax liability or 100% of 2023 taxes, whichever is smaller, and meet these thresholds throughout the year.

If your 2023 adjusted gross income was $150,000 or higher, the percentage jumps to 110%. The adjusted gross income can be found on line 11 of Form 1040 from your 2023 tax return.

How to avoid a 'timing penalty'

Tricia Rosen, a certified financial planner and enrolled agent, stated that many taxpayers mistakenly believe that staying within safe harbor limits exempts them from paying a penalty.

Even with a refund, you can still face a "timing penalty" because the IRS requires tax payments on your income as it's earned, she explained.

The quarterly estimated tax deadlines for 2024 are April 15, June 17, Sept. 16, and Jan. 15, 2025. Failing to meet these deadlines can result in an interest-based penalty, calculated using the current interest rate and the amount that should have been paid, which accumulates daily.

Depending on their location, taxpayers affected by natural disasters in 17 states, Puerto Rico and the Virgin Islands may be eligible for extra time to make their third-quarter estimated payments, as announced by the IRS.

The 'easiest' way to make tax payments

According to the IRS, electronic payments are the "most convenient, quickest and safest" way to pay estimated taxes.

You can pay your taxes through your online account, IRS Direct Pay, or the U.S. Department of the Treasury's Electronic Federal Tax Payment System, EFTPS, but be aware that payment processors charge fees for debit and credit card payments.