While most tax refunds are claimed by taxpayers in the first quarter, those who have to make additional tax payments, beyond withholding that may come out of a paycheck, are making payments throughout the year. Alkami Research tracked the aggregate volume of federal tax payments made to the Internal Revenue Service (IRS) by account holders in the research panel.
The majority of tax payments are made in April, but those subject to withholding have payments to make in June, September, and January, when quarterly estimated payments are due. Those months, and April, are highlighted in purple for emphasis.
Taxpayers who have to pay quarterly tax estimates may have different financial services needs. Transaction analysis can help financial institutions identify those account holders, and provide financial education tips or support. Those who have additional tax payments due in April, and quarterly throughout the year, may tend to have a higher net worth and/or have investments and income outside of their regular job. Deepen those relationships – as they can be the most profitable account holders and a good source of durable and consistent deposits.
