Investing

Traders work on the New York Stock Exchange (NYSE) floor on September 13, 2024, in New York City.
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Here’s what CNBC TV’s producers were watching on Monday as the 30-stock Dow touched a new high and what’s on the radar for the next session.

Intel

The stock picked up ground after hours, jumping as much as 8%.
The company is creating a separate entity for the foundry side of the business.
Intel also announced it will produce custom artificial intelligence chips for Amazon Web Services.
CEO Pat Gelsinger told Jon Fortt and Morgan Brennan on “Closing Bell Overtime” on Monday that “we’ve taken it to a whole another level,” when speaking about the Amazon Web Services deal.
He also said his company’s new chip, 18A, is “making great progress.”
Speaking about last week’s board meeting, Gelsinger told Fortt and Brennan: “I and the board are aligned in the strategy for Intel foundry and moving to the next phase in the foundry journey.”
Shares closed higher by more than 6%, ending the session at $20.91. The 52-week high is $51.28, hit back on Dec. 27.

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Intel shares in 2024

The Apple suppliers

Apple dropped 2.8% on Monday after a few analysts questioned early iPhone 16 orders.
Shares are 9% from the July 15 high.
Arm dropped 6%. It’s a big part of the new phone. The stock is 27% from the July 9 high.
Cirrus dropped 6% Monday as well, down 15% from the late August high.
Qorvo fell 6.7%. The stock is 23% from the mid-July high.
Skyworks fell 5% Monday. The stock is 20% from the July 16 high.
Broadcom fell 2.2%, and shares are 11.4% from the 52-week high.

Gold

The commodity hit a new high this morning before backing down and closing flat.
The VanEck Gold Miners ETF (GDX) hit a high on Monday morning. The ETF ultimately ended the day lower by 0.5%.
The GDX is up nearly 9% in a week. First Majestic, Coeur and New Gold are the best performers in the last week, all up about 30%. Anglogold, Westgold and Ramelius are the worst performers.

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First Majestic’s performance in the past five trading sessions

China

Coffee

The commodity is up 10% in the last week and a half.
Dry weather in Brazil is being blamed.
Coffee is up 63% in a year.
Starbucks is flat in a year. The stock has been reacting to other news including Brian Niccol taking over as the new CEO.
J.M. Smucker owns Folgers. The stock is 10% from the February high and up 8% in three months. More

No one likes a surprise tax bill, and there is still time to take action if you have not paid enough taxes for 2024, experts say. 
Employees can use “back of the napkin math” to double-check 2024 withholdings, assuming your situation is similar to last year, said certified financial planner Tommy Lucas at Moisand Fitzgerald Tamayo.
If your tax situation has changed from 2023, you can use a free withholding tool from the IRS.

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One way to estimate tax withholding

You can start by finding your total federal taxes paid for 2023, which is listed on line 24 of your tax return. If your gross income and tax situation has not changed from last year, you are likely to owe a similar amount for 2024, Lucas explained.   
Next, you will need to review your pay stubs.

If you have paid roughly 75% of last year’s total taxes by the end of September, “you’re going to be pretty darn close, assuming everything is the same as the prior year,” he said.  

However, “there’s a whole slew of things that can change” from year to year, such as a second job, higher income, divorce, marriage or birth of a child, which makes your tax situation different, Lucas said. 
In those scenarios, you will need a more in-depth analysis to double-check your 2024 withholding, he said.    

IRS tax withholding estimator

If your tax situation changed this year, experts recommend periodically using a free tool from the IRS, known as the “tax withholding estimator.”
The tool factors in your marital status, dependents, number of jobs, other sources of income, most-recent paystub, taxes withheld, estimated tax payments and other details.  
After plugging in your information, the IRS provides a prefilled Form W-4, which you can then provide to your employer to increase or decrease your withholding.

Alternatively, you could make payments directly to the IRS to cover your 2024 tax shortfall, Lucas said.
Either way, “you’ve got to keep an eye on it,” or you could face an unexpected tax bill, along with penalties and interest, said Mark Steber, chief tax information officer at Jackson Hewitt.

What to know after updating your withholding

If you update your tax withholding via Form W-4, you will want to make sure the change is accurate and reflected in future paychecks through the end of the year, Lucas said.
But your withholding should be temporary through 2024 and you will need to resubmit Form W-4 again in January, he warned. Otherwise, you could withhold too much for 2025. 

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The Consumer Financial Protection Bureau reached a $120 million settlement with Navient that may lead to compensation for hundreds of thousands of borrowers.
The CFPB has not spelled out who will qualify for the consumer redress, said higher education expert Mark Kantrowitz.
Still, “there are some clues in the settlement” about eligibility, Kantrowitz said.

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The Consumer Financial Protection Bureau last week said it had reached a $120 million settlement with student loan giant Navient that could lead to compensation for hundreds of thousands of borrowers.
The CFPB accused Navient of steering student loan borrowers into expensive forbearances, miscalculating their bills and tarnishing their credit reports. Under the terms of the settlement, Navient is banned from servicing federal student loans ever again.

A Navient spokesperson said the company disagreed with the consumer watchdog’s charges.
As part of the deal, $100 million will be used to make payments to impacted customers, as determined by the CFPB. The remaining $20 million will go to the CFPB’s civil penalty fund.
Here’s what to know about the bureau’s upcoming relief.

Who may qualify for the checks

The CFPB has not spelled out who will be eligible for the consumer redress, explained higher education expert Mark Kantrowitz.
Still, “there are some clues in the settlement,” about who might receive the checks, he said.

Borrowers may not need to apply for relief

“It is likely that eligible borrowers will be identified automatically,” Kantrowitz said.
That means borrowers shouldn’t have to do anything to get the compensation.
The CFPB also warned people not to fall for scams during this time.
“The CFPB will never require consumers to pay money to obtain redress, nor will we ask for additional information before consumers can cash a redress check that we’ve issued,” the bureau wrote.

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Concerns over rising college costs and student loan debt are causing some high schoolers to choose more career-connected pathways over a four-year degree.
Increasing opportunities in the skilled trades with a secure job track and high earnings potential are helping transform Generation Z into the so-called “toolbelt generation.”

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Four years after the Covid pandemic began, there are more than 900,000 fewer undergraduates enrolled in college.
The overall rate of high school graduates choosing to enroll in college held steady in 2023, compared to a year earlier, according to a recent report from the National Student Clearinghouse Research Center — which Doug Shapiro, the Center’s executive director, said was “an optimistic sign.” Although the data shows the rate of high school graduates enrolling within a year of their graduation is significantly higher for students from low poverty high schools.

“Large and widening gaps for low-income students continue to be a cause for concern,” Shapiro said.
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Increasingly, worries over rising costs and large student loan balances are causing some high schoolers to make alternative plans after high school, a separate report by Junior Achievement and Citizens found. Junior Achievement and Citizen polled 1,000 teenagers between the ages of 13 and 18 in July.
Roughly half, or 49%, believe a high school degree, trade program, two-year degree or other type of enrichment program is the highest level of education needed for their anticipated career path.
Even more, 56%, believe that real world and on-the-job experience is more beneficial than obtaining a higher education degree.

“Teens are starting to get a clearer idea, if they are not going to go the college route, of what the alternatives might be,” said Ed Grocholski, chief marketing officer at Junior Achievement. Advancements in artificial intelligence and technology training have also helped change the equation for some young people, Junior Achievement found.

‘You may not necessarily need a college degree’

“While cost is a factor, there’s also the recognition that you may not necessarily need a college degree to be successful,” Grocholski said. “That message is really starting to get to young people.”
Between online credits and certifications, there are more career-connected pathways available at a lower cost, according to Grocholski. “College is one pathway I can take, but then there are other pathways — that wasn’t as clear a few years ago,” he said.
A separate study commissioned by EdAssist by Bright Horizons underscored the role student loan debt has played in rethinking the value of college.
Now, 86% of U.S. workers with education debt said their degree wasn’t worth the toll that student loans has had on their overall well-being. Further, 53% of workers said that knowing they would incur additional debt has prevented them from pursuing more education, according to Bright Horizons’ fourth annual education index, which in May polled more than 2,000 adults who are employed either full- or part-time.

The rise of the ‘toolbelt generation’

With college costs now nearing six-figures a year and a ballooning student loan problem, more would-be students are pursuing careers in skilled trades, other studies show. 
Over 2012 to 2021, the number of registered apprentices rose 64%, according to data from the U.S. Department of Labor, especially in industries such as construction, public administration and education.
From 2022 to 2023, alone, enrollment in vocational programs jumped 16%, the National Student Clearinghouse found.
A shortage of skilled tradespeople, due to experienced workers aging out of the field, is also boosting the number of job opportunities and pay.  
“The great news about economics is the law of supply and demand,” said certified financial planner Ted Jenkin, CEO and founder of oXYGen Financial in Atlanta and a member of CNBC’s Financial Advisor Council.

The college affordability crisis and the rise of alternative career pathways, together, have helped transform Generation Z into the so-called “toolbelt generation,” Jenkin said. And many are benefitting from the secure job track and high earnings potential these vocational jobs now provide.
“The delta between white-collar jobs and good blue-collar jobs is not that big anymore,” Jenkin said.
Federal data also shows that trade school students are more likely to be employed after school than their degree-seeking counterparts — and much more likely to work in a job related to their field of study.
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A McDonald’s fast-food restaurant in Manhattan, New York, on July 6, 2024.
Beata Zawrzel | Nurphoto | Getty Images

September had a bumpy start for investors as volatility jolted markets in the first week, but dividend-paying stocks can help smooth the ride.
Investors with a long-term investment horizon can ignore short-term noise to focus on stocks that have the potential to enhance their total portfolio returns through a mix of dividends and share price appreciation.

To that end, the recommendations of top Wall Street analysts can help investors choose stocks with strong fundamentals and the ability to pay consistent dividends.
Here are three dividend stocks, highlighted by Wall Street’s top pros on TipRanks, a platform that ranks analysts based on their past performance.
MPLX LP                                
We start this week with MPLX (MPLX), a midstream energy player. The company’s quarterly cash distribution was 85 cents per common unit ($3.40 on an annualized basis) for the second quarter of 2024. MPLX offers an attractive yield of nearly 8%.
Recently, RBC Capital analyst Elvira Scotto reiterated a buy rating on MPLX stock with a price target of $47. The analyst updated her model to reflect the company’s solid second-quarter results, with adjusted earnings before interest, taxes, depreciation and amortization surpassing the Street’s estimate by 3%.
Scotto raised her adjusted EBITDA estimates for 2024 and 2025 to reflect the strong performance of the Logistics & Storage segment in Q2 and some consolidation of joint venture interests. The analyst maintained her distribution per unit estimate of $3.57 for 2024 and $3.84 for 2025.

Scotto continues to view MPLX as “one of the most attractive income plays among large-cap MLP [master limited partnership],” thanks to its robust yield and rising free cash flow generation. The analyst thinks that MPLX’s solid free cash flow will help the company to continue to grow its business and enhance shareholder returns through buybacks.
The analyst also highlighted that MPLX is expanding its natural gas and natural gas liquids assets across its integrated network via organic projects, joint venture interests and bolt-on acquisitions.
Scotto ranks No. 18 among more than 9,000 analysts tracked by TipRanks. Her ratings have been profitable 69% of the time, delivering an average return of 20.8%. (See MPLX Options Trading on TipRanks) 
Chord Energy
We move to another dividend-paying energy stock, Chord Energy (CHRD). It is an independent oil and gas company operating in the Williston Basin. The company recently paid a base dividend of $1.25 per share of common stock and a variable dividend of $1.27 per share.
On Sept. 4, RBC Capital analyst Scott Hanold reaffirmed a buy rating on CHRD stock with a price target of $200. The analyst increased his earnings per share and cash flow per share estimates for 2024 and 2025 by nearly 3% to reflect modestly higher production and lower cash operating costs. 
Hanold expects free cash flow of $1.2 billion and $1.4 billion in 2024 and 2025, respectively. The analyst anticipates that FCF will increase in the second half of 2024 due to the combination of the assets of Chord Energy and Enerplus, which the company acquired earlier this year.
Commenting on the Enerplus integration, the analyst said, “We remain optimistic the company is well-positioned to not just meet but potentially exceed the synergy target as operations are fully integrated.”
Further, the analyst expects quarterly distribution of $4.50 to $5.00 per share in the second half of 2024, with dividends accounting for about 60% of the distributions and buybacks amounting to 40%.
Hanold ranks No. 27 among more than 9,000 analysts tracked by TipRanks. His ratings have been successful 63% of the time, delivering an average return of 25.4%. (See Chord Energy Stock Buybacks on TipRanks)  
McDonald’s
This week’s third pick is fast-food chain McDonald’s (MCD). MCD stock offers a dividend yield of 2.3%. McDonald’s is a dividend aristocrat that has raised its dividends for 47 consecutive years.
On Sept. 3, Tigress Financial analyst Ivan Feinseth reiterated a buy rating on MCD stock and raised his price target to $360 from $355. Despite a challenging backdrop, the analyst continues to be bullish on McDonald’s due to its ongoing technology initiatives, innovation and value focus. These factors support its resilient business model and long-term growth potential.
Feinseth noted that the company is focused on enhancing its value offerings to regain its competitive edge. The analyst highlighted several recent value deals introduced by McDonald’s, including the $5 meal deal, which helped improve its image as a fast-food chain offering value and affordability.
Further, Feinseth pointed out MCD’s competitive advantage, which is backed by its solid brand equity, loyalty program and digital initiatives. The company boasts a loyalty membership base of 166 million members. It is targeting 250 million active loyalty members by 2027.
The analyst also noted that McDonald’s is making capital investments between $2 billion and $2.5 billion annually to expand its store footprint and improve its technology, including through enhancing its ordering capabilities through automated voice artificial intelligence. Overall, Feinseth is confident about MCD’s long-term growth potential and its ability to boost shareholder returns through dividends and share repurchases. In fact, he expects MCD to announce a dividend hike in October, similar to the 10% rise announced last year.
Feinseth ranks No. 210 among more than 9,000 analysts tracked by TipRanks. His ratings have been profitable 60% of the time, delivering an average return of 11.9%. (See McDonald’s Insider Trading Activity on TipRanks)  More

Holiday travelers, or those who plan to travel for Thanksgiving, Christmas or New Year’s, should get ready to book their flights in October.
If you miss that window, “one good day to bookmark” is Dec. 3, or Travel Tuesday, according to Hayley Berg, lead economist at travel site Hopper.

d3sign | Moment | Getty Images

If you want — or need — to travel this holiday season, start planning now because the ideal time to book Thanksgiving, Christmas and New Year’s travel is fast approaching. 
“The most important thing is for travelers to continue to think about planning now and booking in October,” said Hayley Berg, lead economist at travel site Hopper. “That window of low prices is brief, but it can really pay off.”

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But travelers who miss that window might have a last resort: so-called Travel Tuesday, which is the Tuesday after Thanksgiving, Black Friday and Cyber Monday. 
That day, “pretty much the whole travel industry goes on sale,” said Berg.
Whenever you decide to confirm your reservations, keep in mind that traveling during the holiday season can be fraught with complications, said Sally French, a travel expert at NerdWallet.
“The holidays are a difficult time to travel because not only are you dealing with what’s likely to be tougher holiday weather, but also working with bigger crowds,” said French.

Here’s how to make sure you’re getting a good value. 

When prices will be at their lowest

Prices for holiday travel are slightly higher compared to this time last year, said Berg.
On average, round-trip flights for Thanksgiving — defined as departures from Nov. 24 to 28 — currently cost about $298, according to Hopper’s 2024 Holiday Travel Outlook report. That is up 10% from a year ago and 3% from pre-pandemic levels, the travel site found. 
Prices are expected to fall by about $40 on average until they reach their lowest level in early October, when prices will likely be in line with 2023 levels, the report noted.
Similarly, airfare for Christmas trips — defined as the week of Dec. 21 to 25 — are hovering at an average $406 per round-trip booking, up 4% from a year ago and 13% from pre-pandemic, per Hopper.

However, prices are expected to fall by about $80 from current levels until they reach their lowest point in October, according to the report.
“It’s really important for travelers to be thinking about booking their travel now, so that when October rolls around, they’re ready,” said Berg. 
If you are “super last-minute and want to book something for Christmas or New Year’s,” according to Berg, “one good day to bookmark” is Dec. 3, or this year’s Travel Tuesday. 
“You might get lucky and … swing something last minute,” said Berg, as the deals that day can include major discounts on hotel stays, airfare and rental cars. 

How to avoid holiday the travel ‘domino effect’

During the holiday season, disruptions are more likely to happen because airlines and airports are operating more flights than usual, and bigger crowds can lead to “domino effect” issues, experts say.
An example: if one flight is 15 minutes late pulling away from a gate, that can affect the flow of air traffic for an entire terminal, said Berg.
But the “biggest risks” are usually inclement weather and technical malfunctions, she said.

You might get lucky and … swing something last minute.

Hayley Berg
Lead economist at Hopper

Here are four key things to consider:

Avoid flying on peak days. For example, around Thanksgiving, avoid the Sundays before and after the holiday, experts say. In the past years, the Sunday after Thanksgiving set records as the busiest day to fly, or the number of travelers passing through TSA checkpoints, said French.

Take the first flight of the day. Try to book one of the first flights of the day because you avoid being affected by delays and cancellations, said Berg. You’re two times more likely to be affected by flight delays or cancellations after 8 a.m., she said.

Allow time for delays and cancellations. If it’s critical for you to be at your destination, “bake in extra time to get there,” and travel a few days in advance, said French. “If it’s really important that you’re there for actual Christmas dinner, fly in a few days early,” she said.

Broaden your search. It can be helpful to know what other airports are nearby, said French. If you know of other airports, it may help you find more affordable options. It could end up being a longer drive to get to your destination, but it can make sense if it’s critical you get there, she said. More

Oscar Wong | Moment | Getty Images

Company: International Money Express (IMXI)

Business: International Money Express is an omnichannel money remittance services company. IMXI offers money transfer services digitally through a network of agent retailers in the United States, Canada, Spain, Italy and Germany. It works through company-operated stores, its mobile application and the company’s websites. Its remittance services include a suite of ancillary financial processing solutions and payment services available in all 50 states in the United States, Puerto Rico and 13 provinces in Canada. It offers money remittance services to Latin America and the Caribbean countries, mainly Mexico and Guatemala. These services involve the movement of funds on behalf of an originating consumer for receipt by a designated beneficiary at a designated receiving location.
Stock Market Value: $601.9M ($18.46 per share)

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IMXI’s performance in 2024

Activist: Voss Capital

Percentage Ownership: 5.64%
Average Cost: $19.14
Activist Commentary: Voss is a Houston, Texas-based hedge fund focused on underfollowed special situations. They are not traditional activists but have used activism as a tool in the past.

What’s happening

Voss has engaged with the company’s board and management team regarding ways to maximize shareholder value, including a possible sale of the company in a take-private transaction.

Behind the scenes

International Money Express is a money remittance services provider which enables consumers to send money from the United States, Canada, Spain, Italy and Germany to Mexico, Guatemala and other countries in Latin America, Africa and Asia. The company provides its services through a network of authorized agents located in various unaffiliated retail establishments, 118 company-operated stores and digitally via an app and its website. IMXI serves more than 4 million clients every month and has a goal of connecting families across borders, ensuring financial services are accessible to those who need them most. The company has roughly 20% market share in the top five Latin America and the Caribbean (LAC) markets and has been continually seeking expansion into new markets. For example, IMXI has made recent acquisitions of La Nacional in 2022, which has a strong market position in remittances to the Dominican Republic and other LAC countries. The company also acquired I-Transfer in 2023, which established outbound remittances capabilities from Spain, Italy and Germany. It also snapped up a money services entity in the United Kingdom in 2024, which will give the company the opportunity to provide outbound remittances from the UK.

This is not an opportunistic activist engagement for Voss. The firm initially reported holding IMXI in its Q2 2021 13F filing when the company was trading around $15 per share and it has held the stock ever since. Now, on Sept. 5, 2024, Voss filed a 13D and reported 5.64% ownership at an average cost of $19.14 per share, purchasing shares as high as $20.09 in the past 60 days.
One of the things the firm states in its 13D is that it has engaged in communications with the board and management of IMXI regarding a potential sale of the company in a take-private transaction. Voss is not the only actively engaged shareholder in the stock calling for a sale. A day prior to Voss’s 13D, Breach Inlet Capital Management sent a public letter to the board of IMXI, urging them to pursue a review of strategic alternatives that includes a potential sale of the company. Breach Inlet asserts that, despite solid operating performance and increasing adjusted earnings before interest, taxes, depreciation and amortization by over 2.5-times since going public six years ago, the company remains undervalued by the public markets. IMXI trades at under 5-times the last 12 months’ adjusted EBITDA while its peer remittances service provider MoneyGram was acquired by private equity firm Madison Dearborn for approximately 8-times adjusted EBITDA last June. Breach Inlet thinks that IMXI should be valued at a premium to MoneyGram, not a material discount, but just an equal valuation would imply a roughly $30 per share price.
Global remittances service provision is a highly fragmented market with no single company commanding greater than 20% market share. Accordingly, there could be consolidation opportunities for IMXI with a strategic acquirer like Western Union, which also trades at a premium to IMXI. If IMXI stays independent, its growth plan of expansion into the digital and European markets would require heavy investment in people and resources, sacrificing short-term performance for long term growth. This is not the type of plan that plays well in the public markets. Instead, IMXI could be a great business to be acquired by a private equity firm that can help facilitate the company’s growth plan while shielding it from the public markets, which have failed to fully value the company. You do not need to be a genius to see the allure of a company like this to private equity: A private equity firm bought it in 2007 and another one again in 2017. 
This is not the first time Voss is advocating for a strategic review at a portfolio company. In its 13D on Benefytt Technologies, filed in December 2019 when the stock was trading at roughly $14 per share, Voss highlighted the strategic opportunities at Benefytt and the active M&A environment in the company’s space. Benefytt was acquired by Madison Dearborn Partners on Aug. 31, 2020 for $31 per share. Most recently, at Griffon, Voss called for a strategic review, which the company undertook and ultimately concluded, determining to stay independent. Despite this, Griffon was a highly successful activist campaign for Voss where the firm gained board seats and made a 139.21% return on its 13D versus 1.28% for the Russell 2000 over the same period.
We strongly believe that modern day shareholder activism is a strategy that greatly benefits shareholders. We believe the best type of shareholder activism involves activists who come in with a detailed, long-term plan to create value, with a board seat being a huge plus. The other side of the spectrum is shorter-term “sell the company” activism that is often great for the investor but shortchanges the long-term shareholder. In those situations, we like to see a longer-term “Plan A” with a sale as a last resort or a detailed analysis on why the company cannot or should not continue as a standalone public company. While Voss does not provide either of these, the firm does have a lot of credibility as a long-term investor (an owner since 2021) who has not been public with its recommendations to management until now. As such, we think Voss’s intentions here are honorable and it’s doing what it thinks is best for both short-term and long-term shareholders.
If the IMXI does not execute on a strategic plan, Voss will likely consider director nominations. While a proxy fight is not likely part of its current plan, the firm has been successful in gaining board representation in previous campaigns. Voss is not afraid to take a proxy fight to a vote. At Griffon, the firm ran a successful proxy fight, winning a board seat for one of its two director nominees at the 2022 annual meeting, and later settling for another board seat. There are two directors up for election at the 2025 annual meeting and the nomination window opens on Feb. 21, 2025. If it comes to a proxy fight there are multiple factors that could work in Voss’s favor, including the company’s depressed stock price. There have also been signs of shareholder discontent, including the roughly 31% withhold votes cast against lead independent director Michael Purcell at the 2024 annual meeting
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More

The third-quarter estimated tax deadline for 2024 is Monday, Sept. 16, and you could incur a penalty if you don’t send a payment.
Estimated payments apply to earnings from self-employment, gig economy work, investment income and more.
You can avoid IRS penalties by sending 90% of 2024 taxes or 100% of your 2023 levies if your adjusted gross income is less than $150,000. You must meet these thresholds throughout the year.

Weiquan Lin | Moment | Getty Images

The third-quarter estimated tax deadline for 2024 is Monday, Sept. 16, and skipping a payment could trigger a penalty, according to the IRS.
Typically, you need estimated payments for any income without tax withholdings, such as earnings from self-employment, contract or gig economy work and investment or retirement income. 

Some filers also need estimated payments if they haven’t withheld enough taxes from a full-time or part-time job.  
Estimated payments can help avoid “refund disappointment or balance due shock,” said Mark Steber, chief tax information officer at Jackson Hewitt.
If you’re unsure, there’s a “general rule of thumb” for who should make a payment, the IRS outlined in a news release last week.   
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You should make estimated tax payments if you expect to owe at least $1,000 in taxes after subtracting your 2024 withholdings and tax credits or if you can’t meet so-called safe harbor rules, according to the IRS.

The safe harbor rules say you can avoid IRS penalties by paying at least 90% of your 2024 tax liability or 100% of 2023 taxes, whichever is smaller. You must meet these thresholds throughout the year.
That percentage jumps to 110% if your 2023 adjusted gross income was $150,000 or higher. You can find adjusted gross income on line 11 of Form 1040 from your 2023 tax return.

How to avoid a ‘timing penalty’

“Many taxpayers incorrectly assume that if they are within the safe harbor limits they won’t have a tax payment penalty,” said certified financial planner and enrolled agent Tricia Rosen, founder of Access Financial Planning in Newburyport, Massachusetts.
Even with a refund, you can still incur a “timing penalty,” because the IRS requires tax payments on your income as it’s earned, she said.
For 2024, the quarterly estimated tax deadlines are April 15, June 17, Sept. 16 and  Jan. 15, 2025. Missing these deadlines can trigger an interest-based penalty calculated with the current interest rate and amount that should have been paid, which compounds daily.
Taxpayers impacted by natural disasters in 17 states, Puerto Rico and the Virgin Islands may have extra time for third-quarter estimated payments, depending on their location, according to the IRS.    

The ‘easiest’ way to make tax payments

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