16 September estimated tax written on post it notes

The Next Estimated Tax Deadline Is September 16: Do You Have To Make A Payment?

If you’re self-employed and don’t have withholding from paychecks, you probably have to make estimated tax payments. These payments must be sent to the IRS on a quarterly basis. The third 2019 estimated tax payment deadline for individuals is Monday, September 16. Even if you do have some withholding from paychecks or payments you receive, you may still have to make estimated payments if you receive other types of income such as Social Security, prizes, rent, interest, and dividends.

Pay-as-you-go system

You must make sufficient federal income tax payments long before the April filing deadline through withholding, estimated tax payments, or a combination of the two. If you fail to make the required payments, you may be subject to an underpayment penalty, as well as interest.

In general, you must make estimated tax payments for 2019 if both of these statements apply:

  1. You expect to owe at least $1,000 in tax after subtracting tax withholding and credits, and
  2. You expect withholding and credits to be less than the smaller of 90% of your tax for 2019 or 100% of the tax on your 2018 return — 110% if your 2018 adjusted gross income was more than $150,000 ($75,000 for married couples filing separately).

If you’re a sole proprietor, partner or S corporation shareholder, you generally have to make estimated tax payments if you expect to owe $1,000 or more in tax when you file your return.

Quarterly due dates

Estimated tax payments are spread out through the year. The due dates are April 15, June 15, September 15 and January 15 of the following year. However, if the date falls on a weekend or holiday, the deadline is the next business day (which is why the third deadline is September 16 this year).

Estimated tax is calculated by factoring in expected gross income, taxable income, deductions and credits for the year. The easiest way to pay estimated tax is electronically through the Electronic Federal Tax Payment System. You can also pay estimated tax by check or money order using the Estimated Tax Payment Voucher or by credit or debit card.

Seasonal businesses

Most individuals make estimated tax payments in four installments. In other words, you can determine the required annual payment, divide the number by four and make four equal payments by the due dates. But you may be able to make smaller payments under an “annualized income method.” This can be useful to people whose income isn’t uniform over the year, perhaps because of a seasonal business. For example, let’s say your income comes exclusively from a business that you operate in a beach town during June, July and August. In this case, with the annualized income method, no estimated payment would be required before the usual September 15 deadline. You may also want to use the annualized income method if a large portion of your income comes from capital gains on the sale of securities that you sell at various times during the year.

Determining the correct amount

Contact us at (818) 789 1179 if you think you may be eligible to determine your estimated tax payments under the annualized income method, or you have any other questions about how the estimated tax rules apply to you.

© 2019

 

2 responses to “The Next Estimated Tax Deadline Is September 16: Do You Have To Make A Payment?

  1. The game of golf seems like a simple game because individuals just seem like they go walking all around striking balls with clubs, but anyone who has at any time enjoyed is aware of precisely how complex the sport is. If you are thinking about taking up this earlier-time or simply want to increase your game, this article has valuable tips so that you can combine. A beneficial hint in terms of the game of golf is in order to stay away from putting on sunglasses when playing. This is significant because your doctor prescribed or shades could actually effect your level impression and lead you to perform sub-par. Naturally, if medication eyeglasses are needed you will probably must have contact lenses like a backup choice. Concerning the game of playing golf, try not to obsess over it. It will be possible to unwind enjoy yourself should you realize that errors occur to every person and so are merely a essential section of the discovering approach. A helpful tip in relation to playing golf is to never ever chuck your night clubs. This is important not only due to the distraction you might cause of other athletes and the absence of sportsmanship you can expect to show, but also as you run the potential risk of harming the hold, mind or shaft of your own clubs. A helpful suggestion when it comes to golf is to successfully know about not only all of the rules, rules, and vocabulary, and also golf course social manners generally. There are several issues that you do or usually do not do on the golfing course that may put you in an uncomfortable condition easily if not done efficiently. “Maintain your eyeballs on the ball” is among the most typical pieces of golfing guidance – with valid reason! A properly-orchestrated golfing golf swing involves plenty of simultaneous motions in the event you concentrate on person motions you shed the co-ordination necessary for an incredible golf swing. Paying attention your eyes along with your interest on the ball permits you to produce a normal golf swing focused on the appropriate target – starting the soccer ball powerfully and correctly. As established at the beginning of this short article, the importance of playing golf can not be overstated and any advancement within your golfing technique is worth a cork-popping celebration. Ideally this article has presented you some very helpful information and facts that will enable you to get the aspirations you may have for your activity and a lot more.

Leave a Reply

Your email address will not be published.

Share: Share by email
Go to the top of this page.