Estimated Tax Payments Due April 15th

Ferrone & Associates CPAsBlog

Estimated tax payments are still due April 15th!The extension to May 17, 2021 for individuals to file their 2020 federal income taxes does not apply to estimated tax payments. Form 2021 Form 1040-ES can help taxpayers estimate their first quarterly payment. Income taxes are pay-as-you-go. So taxes must ne paid as income is earned or received during the year. Most people have taxes withheld from their paycheck, pension, Social Security benefits, or certain government payments including unemployment compensation. Those who are self employed, or are in the sharing economy need to make estimate tax payments. Investors, retirees, and others often need to make these payments because a substantial portion of their income is not subject to withholding. Those income sources can include interest, dividends, capital gains, alimony, and rental income. Paying quarterly estimated taxes will usually lessen, and may eliminate any penalties.Exceptions to the penalty and special rules apply to some groups, such as farmers, fisherman, casualty and disaster victims, the recently disabled, recent retirees, and those who receive income unevenly during the year. Tax help is available 24/7 on The IRS website offers a variety of online tools to help taxpayers answer common questions. And, of course, we are here for you too. Let us know what tax questions you have.