As the 2024 tax filing deadline looms on the horizon, the IRS is issuing a timely reminder to certain taxpayers to act by Jan. 16 to sidestep potential penalties. This early deadline is specifically aimed at taxpayers who fell short in their 2023 tax payments. By submitting a payment on or before the January date, individuals can avoid additional fees, possibly manifesting in the form of an unwelcome tax bill, according to The Hill
.While most individuals have taxes automatically withheld from their paychecks throughout the year, those who are self-employed or function as independent contractors bear the responsibility of remitting their tax payments directly each quarter. Jan. 16 signifies the end of the fourth quarter and the deadline concerning tax payments to the IRS
, making it a critical date for those needing to catch up on their financial obligations to the government.According to the outlet, the IRS highlights that individuals who found themselves owing taxes in the previous year often encounter a similar situation at the close of the subsequent year. Various factors contribute to this scenario, including a failure to adjust tax withholding, income derived from non-wage sources such as dividends, or involvement in complex financial situations.
The scope of taxable income is broad, covering a range of financial inflows. According to the IRS, taxable income includes, but is not limited to, unemployment income, refund interest, and profits from the sale of goods. Even workers participating in the “gig economy” are not exempt from the requirement to declare income earned through side hustles.
To facilitate the payment process and ensure compliance with tax obligations, taxpayers are encouraged to visit the IRS website for detailed information
and guidance on making timely payments. While the general tax filing deadline for 2024 is still a few months away, this early deadline serves as a crucial checkpoint for those seeking to avoid penalties and stay on top of their financial responsibilities.RELATED CONTENT: IRS Sets Standard Mileage Rates For 2024 Tax Year