The 4th quarter estimated tax payment deadline is January 16, 2025 for the 2024 tax year

The fourth quarter estimated tax payment covers income earned from October 1 through December 31. The IRS sets the deadline for this payment as the 15th day of the month following the end of the quarter — which means January 15 in most years. When January 15 falls on a weekend or federal holiday, the deadline moves to the next business day. For 2024, that date is January 16, 2025.

This is the final estimated tax payment of the year. If you miss this deadline, you may owe penalties and interest on the unpaid amount, even if you have enough withheld or saved to cover your full tax bill when you file in April. The IRS charges interest daily from the due date forward.

Key Takeaways

  • The 4th quarter estimated tax payment for 2024 is due January 16, 2025, because January 15 falls on a Wednesday but the IRS observes the MLK holiday on that date.
  • You owe estimated taxes if you expect to owe $1,000 or more when you file your return and do not have enough tax withheld from wages or other income sources.
  • You can pay by electronic transfer, credit card, debit card, check, or money order — each method has different processing times and fees.
  • Missing the deadline triggers penalties and interest that compound daily, even if you ultimately owe nothing or are owed a refund.
  • If you did not pay the first three quarters, you can still pay the 4th quarter payment on time to reduce the total penalty owed.

Who has to make estimated tax payments

You owe estimated taxes if you are self-employed, have investment income, receive rental income, or have other income not subject to withholding. Employees who have a second job or side income may also need to pay estimated taxes if their employer does not withhold enough.

The IRS requires estimated tax payments when you expect to owe $1,000 or more in taxes for the year after accounting for any withholding or credits. If you expect to owe less than $1,000, you do not need to make quarterly payments — you can pay the full amount when you file your return in April.

Married couples filing jointly must combine their income and withholding to determine whether they owe estimated taxes. If only one spouse has self-employment income, both are still responsible for the payment.

Payment methods and processing times

The IRS accepts estimated tax payments through several channels, and each has different processing times. Electronic Federal Tax Payment System (EFTPS) is the fastest method — payments posted same-day if submitted before 8 p.m. Eastern time. EFTPS is free and requires advance registration, which takes one to two business days.

Credit card and debit card payments process within one business day, but the card processor charges a convenience fee of 1.87% to 2.35% of the payment amount. This fee is not tax-deductible. Paying by check or money order takes seven to ten business days to post, so mail it by early January to ensure it arrives by the deadline.

You can also pay through the IRS website at IRS.gov using their payment portal, which offers the same methods as EFTPS but may have slightly longer processing times. The key is to initiate payment before the deadline, not to have it posted — the IRS dates your payment by when you submit it, not when it clears.

What happens if you miss the January 16 deadline

Missing the 4th quarter deadline triggers two separate penalties: failure-to-pay and failure-to-pay-estimated-tax. The failure-to-pay penalty is 0.5% of the unpaid tax per month, up to 25%. The estimated tax penalty is calculated based on the shortfall amount and the number of days it was unpaid.

Interest accrues daily on the unpaid balance at a rate set quarterly by the IRS. For 2024, the rate is 8% per year. This means a $5,000 unpaid estimated tax payment costs roughly $1.10 per day in interest alone, before penalties.

You can reduce or eliminate the estimated tax penalty if you can show that you had reasonable cause for the underpayment — for example, a sudden job loss or medical emergency that reduced your expected income. You must file Form 2210 with your tax return and explain the circumstances. The IRS does not always grant relief, so do not count on it.

How to calculate what you owe for the 4th quarter

The safest method is to use Form 1040-ES, the IRS worksheet for estimated taxes. This form walks you through calculating your expected income for the year, subtracting deductions, and dividing by four to find each quarterly payment. You can download it free from IRS.gov.

If your income is uneven across quarters, you do not have to pay the same amount each time. You can pay more in quarters when you earn more and less in quarters when you earn less. This is called annualized installment method and requires Form 2210 when you file.

A simpler approach: if you paid estimated taxes last year and expect similar income this year, you can pay 90% of this year's expected tax or 100% of last year's tax liability, whichever is smaller. This safe harbor protects you from penalties even if your actual tax bill is higher.

Paying late or making up missed quarters

If you missed the first, second, or third quarter payments, you can still pay them now along with the 4th quarter payment. The IRS will calculate separate penalties for each missed quarter based on how long each was unpaid. Paying all four quarters before you file your return reduces the total penalty compared to waiting until April.

You cannot avoid penalties by paying late, but you can reduce them by paying as soon as you realize you owe. Each day you wait adds more interest. If you cannot pay the full amount, pay what you can now and set up a payment plan for the remainder — the IRS offers short-term plans (180 days or less) at no setup fee.

If you are filing your return early — before April 15 — you can pay any remaining balance with your return and avoid additional penalties for that portion. The IRS only penalizes underpayment through the original due date of the return, not through the date you actually file.

Frequently Asked Questions

Can I pay my 4th quarter estimated tax with a credit card?

Yes, but the card processor charges a convenience fee of 1.87% to 2.35% of the payment amount. A $5,000 payment costs $94 to $118 in fees. EFTPS is free and faster, so use that if you have time to register.

What if January 16 is a holiday where I live?

The IRS deadline is federal, not state-based. January 16, 2025 is the deadline everywhere in the United States because the IRS observes the MLK holiday on January 20. If you live in a state that observes a different holiday, it does not change the federal tax deadline.

Do I have to pay estimated taxes if I am retired?

Only if you have income other than Social Security or traditional pension payments. Investment income, rental income, or part-time self-employment income all trigger estimated tax requirements if the total exceeds $1,000 for the year.

Can I pay my estimated taxes through my bank's bill pay?

No. Your bank's bill pay system cannot route payments to the IRS. Use EFTPS, the IRS payment portal, or mail a check directly to the IRS address listed on Form 1040-ES. Paying through your bank will not reach the IRS and will not count as a timely payment.

What if I overpaid estimated taxes during the year?

You can claim the overpayment as a credit on your tax return when you file in April, or request a refund. You do not need to do anything now — just keep records of all four quarterly payments and report them on your return.