(NEXSTAR) – The tax filing deadline in 2024 is still months away, but some taxpayers have to act by Jan. 16 to avoid a possible penalty, the IRS warned last week.
The reminder is for taxpayers who didn’t pay enough tax in 2023. By filing a payment on or before the January date they can avoid an added fee, which might come in the form of a tax bill.
For most people, taxes are withheld from paychecks during the year automatically, but people who are self-employed or independent contractors are responsible for sending their own tax payments each quarter to the IRS during the year.
Jan. 16 marks the close of the fourth quarter when it comes to tax payments.
The IRS says people who owed last year – whether it was for a failure to increase tax withholding, income from non-wage sources like dividends or complex situations – often find themselves in a similar situation at the end of the following year.
Most income is taxable, according to the IRS, including unemployment income, refund interest or the sale of goods. Workers in the “gig economy” are also not exempt from declaring side hustle money.
If you want to make a payment, see the IRS website.