also i guess some state taxes require you to file at april 15. bunch of savages
The filing date’s been postponed as well.
ok ok. thats what i thought.
low iq thread
Both the filing (including extensions) and the payment have been delayed to July 15. However…
Nonprofit tax returns are still due on May 15. And Q2 estimates are due June 15.
(Yes–Q2 estimates are due June 15 and Q1 estimates are due on July 15. You read that right.)
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Kind of a random tax question. I mail in estimated taxes every quarter. Can I just wait till the end of the year and mail it all in one shot? Does this affect that in anyways? Tanks.
Form 2210 answers those questions.
Basically - if you have paid in 110% of what you owed last year, OR 90% of what you WILL owe for 2019 (whichever is less), then you won’t have any kind of penalty.
However, if you haven’t prepaid at least one of those two amounts, then you will be subject to a “failure to make estimated tax payments” penalty, which is basically interest, charged at about the same amount as the prime rate.
Did that answer your question?
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Do you mean 2019 or 2020?
I’m using TurboTax and on the return it says “If you expect to owe more than $1,000 in 2020, you may incur underpayment penalties if you do not make these four estimated tax payments.”
This is based on 2019 dividends and realized capital gains, I assume. Which are much higher than I anticipate for 2020. Do I really need to pay that much per quarter? Or can I estimate in real time? (I keep track and pay ~20% of dividends and net capital gains per quarter).
If, after all withholding and other prepayments, you owe less than $1,000, then you are not subject to “failure to prepay tax” penalties.
It is based on your entire tax return–ordinary income, LTCG & qualifying dividend income, self-employment income, SE taxes, 5329 taxes, Obamacare taxes, AMT taxes, payroll withholding, ES payments, last year’s tax refund carryforward, child tax credits, education credits etc. Everything.
You can keep track of it in real time. However, what you think is a “quarter” is not what the IRS thinks is a “quarter”. For the IRS,
- Q1 covers Jan-Feb-Mar. Payment is due April 15.
- Q2 covers Apr-May. Payment is due June 15.
- Q3 covers Jun-Jul-Aug. Payment is due September 15.
- Q4 covers Sep-Oct-Nov-Dec, and payment is due January 15.
So you can’t just use your quarterly statements, or your Q2 payment will be late.
Tax work is much more complicated than you think, and it makes zero intuitive sense. This is why you should engage a true professional. Visit www.basincpa.com for a qualified professional with virtually unlimited intellect and analytical abilities.